In a recent interview with Decrypt, Devin Finzer, CEO and founder of leading NFT marketplace OpenSea, called the FTX downfall a “tragic event”. He discussed what we can learn from the collapse.
Seeing an opportunity
In a statement to Decrypt, an OpenSea spokesperson confirmed that the company had no exposure to FTX or Alameda Research.
As the wreckage continues to accumulate, Finzer describes an “opportunity” to rebuild the industry based on trust while embracing decentralization further.
“I think for the broader crypto ecosystem, and for NFTs in particular. This is really an opportunity to invest in strong, continual trust with users,” said the CEO.
As some rival marketplaces opt not to charge creator royalties on NFT sales, Finzer’s comments came amid discussion over OpenSea’s announcement that it would maintain creator royalties.
In most cases, NFT project creators receive royalties automatically from participating marketplaces on the secondary sale price. They range from 5% to 10%.
Maintaining user trust
In light of the changing market, OpenSea has been paying royalties for a long time, but the company announced earlier this month that it was reconsidering its options.
Eventually, the company committed to continuing to pay royalties after receiving overwhelming feedback from NFT creators.
“UPDATE: We will continue to enforce creator fees on all existing collections,” tweeted OpenSea.
Decrypt reported last week that Finzer described the move as crucial to maintaining trust with creators.
Several NFT users hailed the move as a good one, “It’s a shame it took almost a week of backlash for this to happen rather than broaching it with consultants first, but this was the right decision thank you,” said one Twitter user.
It’s a shame it took almost a week of backlash for this to happen rather than broaching it with consultants first, but this was the right decision thank you.
— BETTY (@betty_nft) November 9, 2022
Some NFT marketplaces do take custody of users’ assets when they list and trade NFTs, but not OpenSea.