NFT Platform Change Strategies Amidst Crypto Volatility

Cryptocurrencies have been shedding their value in recent weeks, which has prompted NFT platforms to start reconsidering other strategies. Most NFTs are minted on Ethereum. The crypto asset fell below $1,800 on Friday, representing its lowest value for more than a year. Last November, the token was trading as high as $4000. Seven months later, its value has already fallen by more than 100%.

The decline is gradually creating a sense of panic among Ethereum and NFT holders. But while Ethereum holders are still pondering whether to hold onto the asset or sell-off, NFT platforms are not waiting to see the outcome.

They have started taking action, with some of them announcing changes to the way they operate. OpenSEa, super rare, and Foundation, have all hinted that they are taking a new strategy regarding how they run their business.

Although their decisions have not been directly linked to a response to the volatile market, the nature of the new strategies as well as the timing seems to be a reaction to the current market situation.

Foundation Changes Its Invite-Only Strategy

Foundation is an NFT platform that focuses on single edition or one-of-one NFTs, unlike some other platforms that focus on large PFP NFTs collections like Crypto Punks or BAYC.

Before an artist can sell their work on Foundation, they had to be invited by the platform or by other artists already registered on Foundation.

However, last month, Foundation stated that it will no longer continue with its invite-only strategy. According to the platform, the strategy is a goalkeeping mentality of Web 2.0 and the Foundation wants to shift away from the strategy.

OpenSea Adjusts To Market Conditions Despite Its Large Size

Unlike Foundation, OpenAea did not structure itself around exclusivity. They focused on getting as many users as possible from the onset. This has allowed OpenSea to get a greater share of the market, although that means quality had to suffer.

OpenSea has now taken a surprise move by opening up its marketplace to NFTs that are minted on a crypto exchange called Solana. The crypto infrastructure shares similar features with Tezos as it is less energy-intensive. As a result, users prefer Solana because it is considered friendlier to the environment.

OpenSea has grown to the point that it has become too big to fail. The platform is now valued at a whopping $13 billion, making it the highest-valued market for NFTs. But its large size has not prevented it from making changes to adjust to the current market volatility.