NFT sellers continue to abandon cryptocurrencies

The cost of each NFT on MMT’s platform is Rs. 14,999 and buyers need neither cryptocurrency wallets nor crypto holdings to purchase them. However, once purchased, they can choose to trade them like any other NFT, either on MMT’s own platform or on OpenC, one of the largest NFT platforms in the world. They can also choose to trade using cryptocurrencies after purchasing NFTs.

MMT NFT is one example that has been going on in the industry for quite some time. While both NFT and crypto are based on blockchain technology, experts have often argued that NFTs should not be subject to the same rules and regulations as cryptocurrencies.

As a technology, NFTs use blockchain technology to represent the ownership of a digital item. In simple words, they are the digital equivalent of a deed, which shows that a person owns a physical item. The MMT platform is not the first to use fiat currency for NFT sales, but it is the largest.

In December 2021, auto-maker MG Motors also sold NFTs using fiat currency, while production house UV Creations and online gaming platform Spartan Poker made similar sales. MakeMyTrip and MG Motors did not respond to requests for comments.

All these firms used a platform called nGageN built by CoinEarth, a domestic blockchain firm, which was also the firm behind the digital passport feature on MG Astor Automobiles.

According to Praful Chandra, CEO of KoineArt, the nGageN platform has been created to answer a common concern among brands and creators who want to be in the NFT space – that crypto should be accepted as legal tender by any business in India. cannot be accepted.

The platform doesn’t really remove crypto from the equation. It is built using the Polygon platform, which means that each NFT sale involves a transaction of the company’s Matic tokens on the backend. However, this part is handled by the KoineArt and nGageN platforms. The company has partnered with payment service providers Paytm and MobiKwik to allow users and brands to strictly use fiat currencies. The function of the blockchain at the backend is to keep a record of transactions and remember who owns a particular digital asset.

“Under the hood, we ensure that the gas fee is paid, and the buyer or brand does not see crypto anywhere in their transaction. We bear the cost of the gas fee.” Revenue from each NFT sale.

The gas fee is the transaction fee required to execute a crypto transaction. Since each entry in the blockchain ledger is a transaction in itself, CoinEarth will have to bear these fees on the Polygon platform.

CoinEarth is not the only firm that has recognized the problem of linking crypto with all NFT sales. NFTically founder Toshendra Sharma also said that the company is working on solutions that will separate NFTs from cryptocurrencies. He added that the solution would also allow people to buy NFTs using credit or debit cards.

Sharma said, “Brands are often concerned about the regulatory landscape surrounding cryptocurrencies. We see concerns about crypto exposure. They are concerned that government regulations may make it unviable for them (in the future). Special Basically the legal and compliance teams say they shouldn’t be doing that,” he said.

In the future, Chandra noted that such platforms could take cryptocurrencies out of the equation entirely when it comes to NFT sales. Chandra said platforms like nGageN can be used not only to trade NFTs for fiat currencies, but also to trade any asset, or traditional assets for NFTs, and its Adverse.