If NFT technology is THE phenomenon of the year 2021 and the beginning of 2022, its very principle often makes collectibles difficult to access for the vast majority of users. It is this problem that Liquid Marketplace tries to solve.
Indeed, an NFT is, by definition, unfungible and indivisible, unlike a Bitcoin, which can be exchanged for another bitcoin without any problem and can also be divided into many satoshis. You can buy one hundredth of a Bitcoin, but it is much harder to buy one hundredth of a Bored Ape.
The blockchain and its technology could theoretically make it possible to make absolutely everything work, but this is still hardly the case, unless this new platform revolutionizes this market…
Some of the rare Collectibles we have listed:— Logan Paul (@LoganPaul) April 5, 2022
– CryptoPunk #6837 – $250k
– Psa 8 2009 1/1 Michael Jordan Autopatch – $1.9M
– PSA 8 Pikachu Illustrator – $1.1M
– Logan Paul’s 1st Edition Pokémon Box $378k
& many more pic.twitter.com/FeG5mJENAE
What does Liquid Marketplace really offer?
Liquid Marketplace is not decentralized per se. The platform selects and appraises rare, art, collectible or other items and tokenizes them.
This means that an object, NFT or other asset, normally indivisible, is represented by its own token, which exists in large numbers, allowing the desired asset to be divided. The primary objective is to allow everyone to become partial owners of rare assets whose value makes a conventional purchase conceivable for the average person.
As a result, rare coins whose value exceeds hundreds of thousands of dollars, are divided into several million tokens each worth several cents to several tens of dollars.
How does Liquid Marketplace work?
Liquid Marketplace starts by selecting an asset before having it appraised. Its value will therefore not really be defined by the market.
Once a price called “market value” is decided, the collectible is then divided into several tokens, each becoming a digital representation of a fraction of that collectible. Each token has a value of $0.10, so the dollar value of the item can be divided by 10 to find out the number of tokens.
The tokens are then put on sale in the “offering” category of the site in a “first come = first served” system. Once all the tokens are sold, the platform activates its role as a marketplace and users can then buy and sell the tokens on the secondary market, deciding on a price per token.
The price of each token can rise if demand outstrips supply, or collapse if few buyers are interested.
The 2013-2014 Panini National Treasures Giannis Antetokounmpo card, for example, was estimated at $594,000. Once all the “GATA” tokens were sold at 10 cents, the price of the tokens soared to nearly $19 as of this writing, bringing the total value of the card to over $110 million, well above the actual market price.
In order to fund your wallet for a purchase on Liquid Marketplace, you can use traditional banking systems through card payments or wire transfers. It is also possible to send crypto currencies to your wallet, but be aware that these will be immediately converted into dollars.
Indeed, all the purchases of tokens on the platform are made in usd.
The platform is currently limited to its beta form, but many collectibles are already on sale in the offerings category. We can find among others, Panini, Upper Deck and Pokémon cards and a CryptoPunk NFT for a total value of several million dollars.
Liquid Marketplace could therefore allow physical objects, NFTs or other types of collectibles to be bought and owned by thousands or millions of people simultaneously.
For the moment, speculation seems to be, as often in the world of collectibles and NFTs, the main motivation of the platform’s users, which can pose a real problem as to the real value of the tokens exchanged.