CBx Daily

The OG Online Marketplace eBay Moves Into The NFT Space

May 26

By CultureBanx Team

  • EBay users can now buy and sell NFTs on its platform
  • NFT sales are up 55% since 2020, from $250M to $389M

EBay (EBAY +2.61%) is joining a growing number of companies that have begun to accept virtual currencies as a form of payment, taking an asset class that had been shunned by major financial institutions a few years ago, a step closer to becoming mainstream. The e-commerce marketplace announced that users can now buy and sell non-fungible tokens (NFT) on its platform, which allow artists to sell individualized and unique items to their most cherished followers, in a market where sales are up 55% since 2020, from $250 million to $389 million.

Why This Matters: NFTs, a type of digital asset that exists on a blockchain, have exploded in popularity this year, with the auctioning off of Soulja Boy tweets, Eminem sponsored getaways, to Snoop Dogg collectibles, the roughly $6 billion hip hop industry is big in the NFT arena. EBay intends to remain a destination for the buying and selling of collectibles and unique items.

"NFTs offer greater access to a broader audience of collectors and creators. In the same way, digital publishing brought more exposure for writers, digital collectibles bring greater opportunity for artists and creators," said eBay’s Senior Vice President Jordan Sweetnam.

It’s good that the OG online marketplace is trying to keep up with the cryptocurrency times. The company severely disappointed investors with a weak second-quarter profit forecast earlier this year. At that time the company said it was looking at a "number of ways" to get into the NFT space, and now they have.

Situational Awareness: EBay will face stiff competition from the likes of Bitski, an NFT marketplace that aims to simplify creating, buying, and selling non-fungible tokens. Jay-Z and Serena Williams just invested in Bitski’s $19M Series A funding round led by Andreesen Horowitz.

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