Table of Contents
What are NFTs?
In order to grasp how Nifty Gateway operates, it’s essential to understand the basics of NFTs. Short for “non-fungible token,” an NFT is a digital asset that links ownership of any number of digital items, such as real estate, music, videos, or works of art.
Non-fungible tokens are bought and sold online, frequently with cryptocurrency, and they vary in price and demand depending upon the unique characteristics of the digital piece they verify. At a fundamental level, NFTs can be considered certificates of authenticity or proof of ownership for digital artifacts.
The advent of this emerging technology has caused a surge in the number of platforms that facilitate NFT trading and the buying and selling of digital assets – with Nifty Gateway being one of the largest and most reputable.
A premier marketplace for NFTs and other digital collectibles, Nifty Gateway was founded in 2018 by Duncan and Griffin Cock Foster, and was acquired by crypto exchange Gemini in 2019. The marketplace has since become one of the top NFT platforms in the world.
Although Nifty Gateway presided over a number of huge sales during its first few years, the platform became truly famous after it brokered the sale of digital artist Beeple’s CROSSROAD piece for $6.6 million in February 2021. By May, the NFT platform had reached $300 million in gross merchandise value.
Gemini, short for Gemini Trust Company, LLC, is a cryptocurrency exchange founded in 2014 by the Winklevoss twins. Gemini acts as a custodian that allows customers to buy, sell, and store digital assets. In November 2019, the Gemini Trust Co. bought Nifty Gateway for an undisclosed sum.
Gemini’s ownership of Nifty Gateway has allowed the site to become a premier marketplace for NFTs, while also drawing the ire of certain segments of the crypto community.
One of the drawbacks of a Nifty Gateway account is that the digital assets collectors purchase on the site aren’t stored in their wallet, but are “hosted” by Nifty Gateway and Gemini itself. What this means is that the site’s digital assets aren’t stored on the blockchain. Many NFT buyers feel this removes some of the flexibility and safety normally associated with buying and selling NFTs; however, Nifty Gateway makes up for this perceived shortcoming through flexibility in payment options.
Nifty allows sales and purchases to be made in fiat currency without having to convert cash to cryptocurrency first. Purchases can also be made through credit cards.
Eliminating Gas Fees
One of the perks of not having assets stored on the blockchain is that Nifty users do not have to pay gas fees when acquiring NFTs – a rare feature among NFT exchanges.
Gas fees are payments made by users to compensate for the computing energy required to process and validate transactions on the Ethereum blockchain.
Nifty’s unique content arrangement also allows collectors to move work on platform (buy, sell, gift) without additional fees.
Additionally, if a user loses access to their account, or forgets their password, Nifty will review and verify their information to help them retrieve their data.
Although anyone can apply to create on the site, Nifty Gateway has evolved into an exclusive marketplace for renowned artists and sellers. Known as “Nifties” on the site, the resale value of these NFTs is higher than other platforms, and creators receive a 10% royalty on every resale. The platform also takes a 5% cut on every sale in addition to a $0.30 transaction processing fee.
Another of the site’s perks is its NFT drops, which occur every three weeks and involve the platform teaming up with popular NFT artists such as Beeple, Grimes, Kenny Scharf, Steve Aoki or deadma5 to showcase their art. After the initial drop, collectors can send in blind offers, participate in raffle draws, or bid in auctions to obtain NFTs from a specific collection. Keep in mind that once a drop closes or sells out, Nifties can only be purchased from the marketplace.