Ripple gambles big on non-fungible tokens by beginning a $250 million fund dedicated to the latest cryptocurrency rage. Brands, artists, agencies, and marketplaces can appeal for funding to experiment with NFTs on the XRP Ledger.
The increased interest and boom in NFTs worldwide have opened new revenue streams and business models while expanding the mainstream’s relationships with the communities, people, and things they care about.
However, many creators face obstacles to entry when it comes to creating top-notch NFTs, such as the fear that their products will not sell and a lack of understanding of NFT concepts. Meanwhile, the high transaction fees and inapt user experiences on platforms or marketplaces frequently burden developers.
While digital art and collectibles have instantly captivated public attention, NFTs’ utility exceeds these use cases. Ripple’s Creator Fund aims to facilitate longtail tokenization use cases, such as interactive experiences and fractional ownership, by providing technical and creative support to a diverse range of artists, marketplaces, brands, and creators.
The San Francisco-based blockchain company has already partnered with Mintable, mintNFT, and Chicago-based design firm VSA Partners. In an early August episode of ‘Ripple Drop,’ Ripple CTO David Schwartz explained that XRPL is ideal for NFTs due to its high speed and low and anticipated transaction fees.
Ethereum’s transaction fees have shown a wide range of variations, which is not a good customer experience when it’s difficult to trade an NFT at times and easy at others. Furthermore, Schwartz also proposed increasing the number of NFTs and making them more scalable.
Ethereum continues to reign supreme in the NFT sector, benefiting from first-mover advantage; however, Solana, which made its first seven-figure sale this month, has already begun to erode the market share of the second-largest blockchain. Other ‘Ethereum killers,’ such as Cardano, are also trying to make a splash in the NFT space.