Zebpay, the cryptocurrency exchange that claims to have more than 3 million users in India, is now exploring broader crypto market opportunities, such as digital collectibles.
By launching a new market named Dazzle, Zebpay has chosen to expand into the non-fungible token space. NFTs are unique but tradable blockchain assets that can be used to represent all manner of virtual and real goods.
NFTs are different from cryptocurrencies in that NFTs can carry unique metadata with different rarity. They are increasingly popular in tokenized markets such as video game events, digital art and fantasy sports.
A Zebpay representative noted that the exchange is seeking to promote blockchain participation among the 5 million active crypto investors in India beyond cryptocurrencies. The exchange believes that in areas such as the digital art market, NFTs can provide new opportunities for Indian artists to protect their digital copyrights and monetize their work. The representative further pointed out that the NFT global market now has a total value of $100 million and is growing, making it a promising industry.
Currently, the market is launching with Zebpay's local NFT, known as Dazzle. A representative of Zebpay said the exchange plans to distribute tokens to members via various programs:
"We'll start with reward tokens offering zero membership or trading fees: some to our most loyal and active members, some as random airdrops, and some through fun contests. We probably will never sell them. We want to seed the ecosystem and let our members grow it organically. If they want to trade their NFTs, they can."
According to reports, from top football clubs to Formula 1, various franchises are increasingly recognizing that branded digital collectibles, NFT auctions, as well as other blockchain-based ecosystems are effective means to monetize fans' participation and build markets for online viral phenomena and trends.
Blockchain developers like Vitalik Buterin have long seen these diverse apps as a potential way for the technology to gain traction in more diverse markets beyond retail and professional digital asset trading.