Opensea, one of the largest NFT marketplaces in the industry, took a reactionary step on Thursday. The pioneering NFT platform has announced that it will now enforce royalties on demand. Famous billionaire Mark Cuban interprets this decision as a “Big Mistake”.
Mark Cuban spoke about Opensea, of which he is an investor
Earlier this week, Devin Finzer, CEO of OpenSea, announced that creator fees will continue, but one-sided apps will end. This change aims to reflect “selection and ownership principles that better reflect the [OpenSea] ecosystem.”
Cuban, who has invested in OpenSea, says the protocol’s new royalty policy is a bad decision that hurts the industry and the NFT platform. Cuban said, “Not collecting and paying royalties on NFT sales is a MAJOR mistake of OpenSea. It reduced trust in the platform and hurt the industry. I say this as an OpenSea investor…” he says.
Make the transactions free for NFTs that pay their royalty and then take a percent of the royalty as the fee. The originators still get paid most of the royalty, which is obviously better than nothing and @opensea gets paid an amount that is probably better than the trx fee https://t.co/LGJPlTAXV0
— Mark Cuban (@mcuban) August 18, 2023
The famous billionaire argues that there is a better way to get paid for content creators and OpenSea. “Making NFT transactions free while paying royalties will still provide royalties to content creators and bring more revenue to OpenSea,” he suggests.
Cuban also emphasizes that it supports royalties so that creators can continue to receive payments even when their products are sold on the secondary market. “It offers manufacturers the opportunity to get a share of future sales. “This provides a fairer pay model for content creators.” As a result, Cuban feels that copyright protection in the NFT space is a more sustainable and fair solution for content creators.
Blue-Chip NFTs are losing volume
With the concerns Cuban raised about OpenSea, high-end NFTs continue to melt. Blue-Chip NFTs are generally characterized by high floor prices, strong communities, and potential for future use. It includes NFT projects like CryptoPunks, Bored Ape Yacht Club, CryptoKitties, Milady and more.
The Blue-Chip Index, which peaked at 8421 ETH on June 5, has been bearish since then. As of this writing, at 5208 ETH, it’s down 38% in the last 90 days. Meanwhile, the trading volume of the OpenSea platform drops from $3 billion to $100 million.
The new year was marked by a steady decline in the value of the NFTs that make up the BAYC collection. Currently, the base price of BAYC is around 25.6 ETH. An NFT from the BAYC collection last traded at this level in August 2021.
Bored Ape floor below 30 ETH now
Quite wild to watch, the NFT space has been getting absolutely clobbered
Do you guys think this will fully retrace or is there a 2nd bull run coming? pic.twitter.com/G8yvWwaeNy
— DonAlt (@CryptoDonAlt) August 16, 2023
In this process, the altcoin industry is not having a good time. As we reported as Kriptokoin.com, multiple altcoins reached historic lows this week. The falling volumes in the NFT sector and the copyright decision of the leader Opensea platform are on the agenda.
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