We’ve heard a lot of buzz in the crypto world nearly since its inception, that there will be new versions of Ebay, PayPal and many other businesses that we are now used to and yet often fed up with.
Today, there is a professed alternative for Ebay, at least, that has the possibility of being credible. Rare Bits has been billed in a news report as the Ebay for the crypto-industry, although after a short analysis of what the platform is trying to do, it might just become clear that this connection isn’t exactly direct.
TechCrunch reported on Thursday that Rare Bits is not exactly crypto’s answer to Ebay but it is trying to be the marketplace for “non-fungible crypto-assets.” What this essentially means is that the goods that are bought and sold here, are in no way necessities for people and are also unique as to what they are. Since the marketplace is live in Beta, products like crypto trading cards as well as CryptoKitties, from the well-known Ethereum-based game, are already being bought and sold. In addition to this, it appears that people are starting to sell artwork of different kinds.
The marketplace, up to now at least, has absolutely no-fees and the team states concretely that it intends to remain as crypto’s no-fee Ebay. As time passes, it will be interesting to see whether they can sustain this business model.
Even though the team styles the marketplace as a social venture meant to solve the specific problem of establishing ownership of digital goods, the question remains: where and how will they make money? According to TechCrunch, competitors charge around 1% fees to create revenue.
On the other hand, the only way that Rarebits is reportedly generating revenue is when developers post items for sale with their own fees. TechCrunch uses the example of a 5% added fee for something like an in-game item from a game company. Apparently this fee is then split in half with the Rare Bits team and therefore, this is their only source of revenue at this time.
The project is in its early stages and it will be interesting to see how all of this plays out. As of now, all payments seem to be made in Ethereum and the platform even has integration with Metamask on the Ethereum network. Despite this, it’s important to keep in mind that Rare Bits is in its infancy and anything could happen given the full launch of the platform. All in all, it appears to be a good move towards legitimizing the future of buying and selling via crypto.
By: BGN Editorial Staff