Horizon Fintex

Dec 3, 2021

7 min read

NFTs on Upstream, a regulated digital stock exchange, vs. existing NFT marketplaces

Upstream, a next generation marketplace for digital assets, securities, and NFTs

Areas of concern for existing NFT marketplaces

1. Anticipated KYC/AML regulation coming to the NFT space

As with most technological innovations, many NFT platforms have moved faster than regulation which could be opening the door to KYC, AML, and securities law violation risks.

2. Blockchain knowledge barrier

Most NFT platforms require Ether or some other cryptocurrency to purchase NFTs. This requires users to set up their own cryptocurrency wallet from a third-party like MetaMask, open an account at a cryptocurrency exchange, fund their account from their personal bank account or credit card, learn how to buy cryptocurrency, learn how to safely export cryptocurrency to MetaMask, connect MetaMask to an unregulated NFT marketplace (e.g. OpeanSea), approve access to all their MetaMask cryptocurrency, and finally, the trader is ready to bid on the NFT marketplace.

3. Accessibility hurdle

The majority of NFT marketplaces are built on Ethereum. With Ethereum and NFT’s concurrent spikes in popularity, gas (network) fees continue to skyrocket, taking NFTs further out of reach of retail fans, and investors.

How Upstream addresses the concerns

1. Fully regulated

Upstream is a fully regulated digital stock exchange which means our NFT market inherently meets U.S.-securities and bank-secrecy laws as standard practice.

2. No blockchain knowledge needed

Upstream offers a true one-stop-shop for creating and selling NFTs with no third-party integrations and no blockchain knowledge needed.

3. Accessibility

Upstream operates as a layer-2 Ethereum rollup with no gas fee for its users, no funding fee, no cryptocurrency exchange fee, no NFT bid fee, no NFT transfer fee for winning bids, and no ACH withdrawal fees to a U.S. bank. So, on Upstream, a trader could fund with $100, and buy an NFT for $100 with zero fees.

Upstream vs other NFT platforms

Disclaimers

This blog shall not constitute an offer to sell securities or the solicitation of an offer to buy securities in any jurisdiction where such offer or solicitation is not permitted. U.S. investors are not permitted to trade in Upstream listed securities. U.S. and Canadian citizens will only be able to trade in a security they currently own that has listed on upstream for liquidation only.