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Crypto Week: Binance CZ Has No NFTs, OpenSea Begins Transformation

Turbulent times provide a good opportunity to rethink long established practices. The crypto market players are debating about a change of existing motivation principles on decentralized platforms. Existing principles promote retrospective user activity. Many people are faking activity to get an airdrop, while selling all tokens and leaving the project after receiving it. Such user behaviour is extremely negative for any project and token prices as it creates false impressions that the project has an active user base.

Perhaps, crypto platforms may copy the approach social media platforms take when it comes to such issues, such as TikTok that has a special fund to reward users. To become rewarded a user should have above 10,000 subscribers and 100,000 views of their videos. The user should comply with certain criteria for views and engagement. In other words, this is not money for nothing. The reward only goes to those who really promote the platform and spin up user engagement. Such an approach requires more detailed analysis of the product and clients, and suggests that the project will exist for quite a long time.

Binance CEO, Chanpeng Zhao, has confirmed that Binance does not issue BUSD stablecoins, although they do associate with the Binance name. So, there is no regulatory threat to Binance regarding these stablecoins. He also said the crypto industry may start to use stablecoins pegged to the Euro, Yen, or Singapore Dollar, after the recent U.S. SEC actions against the U.S. Dollar-pegged BUSD. He also gave props for NFT technology, but noted that he personally is neither an avid trader or NFT collector while also explaining that he has lost most of the NFTs given to him by several projects.

OpenSea, one of the largest NFT marketplaces, has cancelled its 2.5% commission on token sales, and cut its royalty to 0.5% amid competition with other marketplaces, such as Blur that has zero commissions and uses its own native token to run the business. Thus, it will be no wonder if OpenSea considers launching its own tokens to tokenise its business as other younger peers are doing. In this regard, the market place may announce an airdrop some time just before the ICO.

The situation in the crypto market is seen to be unchanged. The recent rise of BTC prices has no particular fundamental reasons as no change in monetary policy of the major central banks is expected. Thus, a possible roll back below $22,000 per coin might be expected.