Rarible‌ NFT Marketplace ‌Review

Rarible‌ ‌Review 2022:‌ ‌NFT‌ ‌Marketplace‌, ‌Create‌ ‌and‌ ‌Mint‌ ‌RARI‌ ‌Token‌

Rarible has undoubtedly managed to create a buzz in the market, which has led to its rapid growth in popularity. It is one of the most notable projects in the NFT space and is known for its bridge to DeFi. This combination could make it one of the best projects in 2021 and 2022. The development team only needs to solve some of the problems associated with the project.

What is Rarible?

Rarible is a platform where any artist can post their digital art in the form of NFT and put it up for sale.

The Rarible NFT marketplace has been fully operational for over a year and is attracting more and more attention. For the Russian-speaking community, this project is notable because it was created and managed by two domestic developers.

The site has several unique tools that could not be found in competitors of that time. One of these is a simplified interface for creating NFT tokens in a few clicks.

The second feature is the lack of pre-moderation when creating tokens. Many artists switched to Rarible because other NFT marketplaces had strict requirements that made listing NFT extremely difficult.

There are two ways to make money on NFT:

  1. Sell ​​your work. Then the cost will be formed depending on your popularity and the quality of the work done.
  2. Resell works. Investing in NFT has become a popular trend in fashion because it allows you to save funds and increase them. Some users buy a single copy of one artist’s work. They promote the author’s name to increase his popularity. As a result, the new owner of the first works can resell the NFT at a hefty mark-up.

The first method is suitable for artists who can organize entire exhibitions through Rarible. Anyone can purchase NFT at a set price or through an auction. The second method is characterized by increased risk. In an unfortunate combination of circumstances, the invested assets will begin to depreciate. In addition, to make money on resale, you need to know the market where speculation occurs. Therefore, resale is not suitable for every user.

Rarible founders

The project’s founders were Alexander Salnikov and Alexey Falin, who met each other on Facebook. Salnikov had already created five blockchain projects by that time, and Falin had created the AirPano Travel Book application for travelers. They discussed trends and views on the future development of business projects. They came to the conclusion that they have a lot in common and can start working together.

Rarible history

The first version of Rarible was released at the end of 2019, but the service could only be fully disclosed in 2020. The company was registered in Wilmington, Delaware, USA. The entrepreneurs decided that they did not want to create another typical project, so they began to develop their ideas in the direction of the NFT marketplace.

In March-April 2020, the team began to improve the site based on the feedback from the first users. Then a “leaderboard” appeared on the NFT marketplace – an updated rating of the most expensive transactions, purchase notifications, payment options for several types of cryptocurrencies, as well as the ability to create and upload several copies of your work at once. Artists were also allowed to independently choose which royalties they wanted to receive in the secondary market.

Thanks to these updates, new users came to the Rarible NFT marketplace, and by May, the total volume of transactions increased 2.5 times compared to April, to $ 24,000. Later, in June, the work verification function was implemented on the Rarible website to limit the appearance of stolen jobs and spam …

In September 2020, entrepreneurs closed the first round of investments – pre-seed, receiving money from the CoinFund venture capital fund from New York. The partners do not disclose the size of the investment. They claim that they were not looking for investors. They wrote to them on the social network.

In January 2020, entrepreneurs closed a $ 1.75 million seed round from 12 investors, including 1kx blockchain funds, CoinFund, ParaFi, and Coinbase. The investments allowed the company to expand the team: now the startup employs 25 people, most Russian developers. Startup managers and support specialists work remotely from Canada, the USA, Netherlands, South Africa, Kazakhstan, and other countries.

In June 2021, Rarible raised $ 14.2 million from US funds. The round was led by the American funds Venrock and CoinFund. The parties did not disclose the assessment of the company and the terms of the transaction. Rarible used the resulting investments to expand the IT team and marketing department, develop a mobile application, and open source network protocol Rarible Protocol.

All this, the partners are sure, will allow the site to become a “multi-billion dollar business” in just four years.

Rarible users

At the beginning of 2021, Western and Russian stars came to Rarible, due to which, by March, the total sales on the site increased to $ 28 million. In January, it was $ 3.7 million. In March, the number of the Rarible NFT marketplace users, according to Rarible, exceeded 500,000. According to DappRadar, as of November 8, 2021, 1,911 users make transactions every week. According to Rarible, while most of the audience (40%) are residents of the United States, Russia accounts for only 5% of registered users.

Singer Sean Ono-Lennon, rap group Wu-Tang Clan, actress Lindsay Lohan, bloggers Ilya Varlamov and Ruslan Usachev, and famous artists, such as the Moscow graffiti team “Why!” and author of the animated web series Mr. Freeman Pavel Muntyan.

How does Rarible work?

To register in the Rarible project, you will need to download the Metamask browser extension or another similar crypto wallet and create your personal account in it.

How to register for Rarible account:

  1. On the official website rarible.com, you need to click on the Connect wallet button, which is located in the upper right corner of the page.
  2. Select the wallet you are using.
  3. Approve the connection of the crypto wallet to the platform.
  4. Agree to the terms of the platform and confirm that you are over 13 years old.

You are now a user of the service and can create, sell NFTs and buy NFTs on Rarible.

How to buy NFT on Rarible – Review?

To buy NFT, you need to select the work you like and click on the Buy button. The system will ask you to confirm the transaction and indicate the number of funds debited from the Rarible account. You also need to consider the Gas fee, which is charged as a payment for the transaction. The amount of this commission will be indicated in the wallet when you try to make a payment. After the transfer of funds, the rights to the NFT are fully transferred to the new owner.

Rarible auctions

The procedure for participating in the auction begins with sending an offer for the user’s willingness to buy NFT. The seller can then agree or refuse the Bid and expect a better price. The auction will continue until the seller accepts one of the orders.

How to create your own NFT on Rarible?

After connecting the crypto wallet to Rarible, creating an NFT in the Create section will be possible. There are two ways to create a non-fungible token:

  1. Unique token – Single. Then the seller gets the opportunity to transfer his NFT only once to one buyer. The token is created according to the ERC-721 standard.
  2. Creation of tokens available for various sales – Multiple. Then several users will be able to buy a copy of the NFT, who will equally be the owners of the rights to the token. The token is created according to the ERC-1155 standard.

The further procedure for adding a token to the system will not differ. In the case of Multiple, only one item will be added – the number of copies.

Filling out the NFT card

When the user has chosen the scenario, he will need to fill out an NFT card consisting of several forms. First, you need to download a file weighing no more than 30 MB. The system allows downloading files in PNG, GIF, WEBP, MP4, MP3 formats. Many sellers try to bypass this limitation and upload a preview of the work as a file. The link to the original is already indicated in the closed description of the NFT token.

Sale format

Next, you need to choose the format of the sale. It can be a fixed price (Instant sale price). Upon payment, the buyer immediately receives all rights to the token. The price is indicated by the creator of the NFT. The second option is an auction, then users will bid on the NFT token until the seller agrees with one of the offers.

You can add an Unlock once you purchase an item that allows you to add content exclusively available to the NFT purchaser. It can link to the original work in high resolution or an invitation to a private chat on Telegram. The input field supports the Markdown mark-up language, which will make the text easier to read.

Collection creation

By default, all created NFTs go to the Rarible collection, which defines the smart contract that issues them. Additionally, it groups tokens in the system to create a single storefront. Therefore, creating your own collection is an optional step.

Creating your own collection is available only after transferring Ethereum as payment for creating a new smart contract. Novice artists will not benefit from this. A separate collection will be made for your unique digital assets, which will only be helpful to large sellers. The very process of creating a collection also requires payment of a commission.

Form for creating your own collection:

  1. Choose file – select a file that will be the cover of the group.
  2. Display name – set the name of the collection.
  3. The symbol is an abbreviated name for a smart contract. You can enter no more than 10 characters.
  4. Description – description of the group.
  5. Short URL – link to go to the group.

Fill in information about the NFT itself. The form includes 4 fields:

  1. Title.
  2. Description.
  3. The number of copies – indicates the number of copies sold. The field appears if Multiple is selected when choosing a method for creating a token.
  4. Properties – item characteristics and hashtags.

Operation and Token Creation Fees

When selling NFT on Raible, the author will have to pay a commission. Its size is constantly changing depending on the workload of the blockchain. Therefore, to get the most favorable conditions, it is recommended to use special services that show prices for all actions on Rarible. The platform charges 8 types of commissions for different operations:

  1. Mint – file upload and token creation.
  2. Accept Bid – acceptance of the bet.
  3. Approve – crypto wallet confirmation (one-time payment).
  4. Transer – NFT dispatch.
  5. Burn – remove NFT.
  6. Make Bid – place a bet.
  7. Own Collection (Single items) – creating a collection with tokens in a single copy.
  8. Own Collection (Multiple items) – creating a collection with tokens in multiple instances.

When creating an NFT, you need to pay two types of commission – Mint and Approve. It’s recommended to find the Gas fee section in your crypto wallet in the Edit tab and set the Slow setting to reduce the commission cost. This will reduce the commission by increasing the transaction confirmation time.

Royalties

The last step is royalty selection. This parameter directly affects the seller’s earnings since, upon resale of the NFT, the original creator will receive a royalty. When an author sells an NFT, he gets the total value of the token. And when the same NFT is sold by the new owner, the author of the work will again receive a reward, but already in the specified percentage in the Royalties field.

All that remains is to pay the commission and fill out your profile. You need to complete the creation of the token with the Create button. NFT is put up for sale or auction immediately after clicking on this button without the need to wait for additional moderation.

The RARI Token

RARI is a utility token that has the following use cases in the Rarible marketplace:

  1. Control. One of the main functions of the RARI token is that it works as a governance token in the Rarible ecosystem. With the RARI token, collectibles creators can vote on various features, including system updates. Holders of tokens vote on Rarible trading fees, their development, and new features implemented on the Rarible market.
  2. Curators. The Rarible marketplace aims to create a community-driven marketplace through RARI token holders.
  3. Selected Works of Art. RARI token holders can also gain popularity and vote for submitted artwork on their marketplace.

How RARI will be distributed

Most (60%) of the total RARI supply is reserved for sellers and buyers in the Rarible market. 75,000 tokens are handed out every Monday at 12 noon San Francisco to creators and collectors who have made a sale or purchase on Rarible in the past week. Buyers and sellers alike receive 50% of the weekly distribution.

To kickstart the distribution of tokens, Rarible is also running a RARI giveaway to all NFT holders. 10% of the total RARI supply is shared among everyone who purchased NFT, regardless of the platform they used.

Who is available to participate in the RARI distribution:

  1. Existing Rarible users since 05/07/2020. Active users will receive 2% of the total RARI supply per the Liquidity Mining principle: based on the previous volume in the Rarible market. Both buyers and sellers will receive 50%.
  2. Registered NFT owners/buyers from 20/07/2020 At this stage, 4% will be distributed among the Ethereum addresses of all digital assets with registered sales in Dune Analytics.

How to get RARI?

RARI is not an investment token and must be earned by active support on the platform. Therefore, to get RARI, you should:

  • create and sell NFTs;
  • collect digital items;
  • get AirDrop as a Rarible user;
  • get AirDrop as an NFT holder.

Rarible metrics

25 million RARI tokens will be created using the ERC-20 token standard. Of them:

  • 30% will be reserved for the team and the company’s ecosystem;
  • 2% will go to existing Rarible users;
  • 4% will be distributed to holders of any NFT traded on any platform.

However, for this latter group to claim their RARI, they need to register with Rarible. The allocation will be based on how much users spend on their NFT assets. Later there will be another distribution of 4% of the RARI offer, again among all NFT users.

60% of the offer, the remaining tokens will be distributed over four years to everyone who buys and sells NFT on the site. For 200 weeks, it will distribute 1 / 200th of the resource intended for users, each depending on how much they spent and earned on Rarible this week, divided proportionally.

As of November 8, 2021, RARI ranks 408th in the CoinMarketCap rating with a market capitalization of $ 132,688,001. The price for 1 RARI ranges from $ 20.18 to $ 25.77.

Rarible Governance Principles

The real innovation for Rarible is that it is on a gradual decentralization path towards community ownership. Rarible is currently implementing full decentralized governance, as are many DeFi projects that are launching today. As a result, the platform’s core functions, economics, and smart contracts will ultimately be entirely in the hands of the Rarible community through the ownership of RARI.

Over time, the crypto monetization and core value propositions of crypto networks implemented by Rarible will make them competitive with other digital markets. And Rarible will become the leading marketplace for NFT liquidity. By using RARI, Rarible will foster a robust and loyal community that supports an active two-way market.

To provide governance to the Rarible platform is the primary use case for the RARI token. The developers wanted to give the community power over the platform’s future by curating and moderating digital assets built on the platform and voting on adding new features or removing deprecated elements.

Ultimately, the Rarible team intends to turn the platform into a DAO by handing over all management decisions to users.

To steer the community in the right direction from the start, the developers have released a set of governance principles that they expect the community will follow as it grows.

So take a look at what that principles are:

  1. Radical inclusion. Creators and collectors can propose changes and new features, vote for platform updates. Also, platform users can use their RARIs to make the platform better and more convenient for everyone. Thus, even the most radical ideas are considered by the community.
  2. Self-expression. Rarible encourages self-expression in any form and on any issue. This could be a proposal for a new feature, an expression of concern, support for a project, or even disagreement with other contributors. Any form of self-expression is encouraged, and every opinion will be heard and taken into account.
  3. Positivity. Every suggestion must be made to improve the platform. Rather than just flooding the community with tips, each one should be scrutinized for its impact on the Rarible platform and community before being presented.
  4. A responsibility. As well as the need to study any suggestion or idea to make sure it is of use to the community and platform. Every thought or proposal that is made to the group must be clearly articulated. It should make a compelling case for itself and include practical steps that can be used to implement the proposal, rather than simply expressing a desire.
  5. Perspicuity. Until the actual DAO is created, it is recommended that anyone submitting or commenting on any proposal be fully open. This includes mentioning their name and the number of RARI tokens.

Rarible Roadmap

There is no official roadmap for Rarible. The team behind the project is very responsive to events as they develop, showing an apparent lack of planning. However, the project continued to overgrow, promising for future development, even without a roadmap.

There is also no technical document for the project. Most of the information about the project can be discovered from Rarible team blogs and posts. These include pricing engine, optional NFT DeFi, social components, mobile app, NFT market index, etc.

Can Rarible be trusted?

The platform’s reliability may be challenged if it does not open to its founders and the development team. Interestingly, one of the project management principles is transparency, but the Rarible NFT marketplace development team does not have this characteristic.

It would also be helpful if the project had a whitepaper and roadmap. This will make it easier to figure out the details behind the product and understand where it is going.

Although Rarible is not without some issues that need to be fixed before the platform can become a market leader. Chief among them is the ability of users to abuse the system through flush trade. This is where a user has multiple accounts and buys art from himself to receive RARI tokens. If this type of manipulation becomes too widespread, it will devalue the entire project.

In the meantime, Rarible is taking steps to minimize wasted trading. He has stepped up efforts to find and blocklist traders on the platform. The team needs to find a more reliable automated method to find, punish, and disallow fictitious trading.

Pros and cons of Rarible NFT

Rarible indeed provides creators with the ability to build unique digital creations and connect with buyers and collectors interested in their products.

Pros of Rarible

The indisputable advantages of the platform include:

  1. Open-source.
  2. A non-storage marketplace.
  3. The ability to create and mine digital tokens without knowledge of coding.
  4. Low-cost peer-to-peer NFT trading.

Cons of Rarible

Among the few visible disadvantages of the platform are:

  1. Fictitious trading by cybercriminals. Allows illegal access to the RARI tokens.
  2. No official document or roadmap.
  3. Stakes only Ethereum blockchain network tokens.

The Rarible platform was designed for those with an artistic bent but no technical background. This allows for a fully open community where anyone can create digital items and a marketplace to showcase and sell NFTs.

The NFT - WTF?