Ripple has launched a $250 million fund to support the development of non-fungible tokens (NFTs) on its platform, the company said in a blog post on Wednesday.
Creator Fund will work with creators, brands and marketplaces to find new use cases for NFTs on Ripple’s XRP network, which could help it compete more fiercely with the Ethereum blockchain – the main network for NFTs.
NFTs, which are essentially cryptocurrency collector items that represent real-world assets like artwork, have been widely adopted by fashion houses, artists, and creators and promoted by celebrities and star athletes. Already, there are 20 million NFTs on the OpenSea platform, the largest token market.
“Ultimately, we believe that NFTs exemplify the promise of the token and represent a turning point for its mainstream embrace. With the Creator Fund and XRPL (XRP Network), we are excited to unleash a new utility for NFTs and accelerate the broader transition to tokenization,” Ripple said. in his post.
NFTs are unique and cannot be replaced similarly. To buy or trade them, people often have to use a cryptocurrency – such as the ethereum token – which in turn has led to a surge in demand for cryptocurrencies this year.
Ripple’s XRP network is an open source decentralized platform that is used by many people for fast and low cost transmission of payments through its network. The blockchain also hosts NFTs already.
The network’s XRP token has gained a lot of popularity this year, along with the rest of the cryptocurrency market. It is up about 290% over the year, compared to a 50% increase in Bitcoin at the time, according to Bitfinex data.
“Many content creators remain reluctant to engage with NFTs due to technical concerns about NFT platforms, or a fear that the NFT will not gain traction. Developers can also be held back by outdated user experiences, high transaction fees, and concerns about the environmental impact of online minting. Many other platforms.