What is MakersPlace
MakersPlace is a San Francisco-based company that serves as an NFT marketplace. Operating as an art gallery, the platform is very selective on which artists they choose to work with and will only invite a few new creators each month.
Once accepted, creators are allowed to mint unique digital assets called non-fungible tokens that are tracked on the Ethereum blockchain. These can be showcased and sold to collectors who either keep the asset or resell it later in the future.
How does MakersPlace work?
Simply put, MakersPlace is a platform where invited artists can mint new creations to sell. While the work is showcased on the site, MakersPlace will never take custody of the asset. It simply acts as the medium that allows buyers and sellers to connect their wallets in order to exchange goods.
Sellers can list their items at a set price, accept offers, or even start an auction. Buyers can make purchases using ether (ETH), PayPal, or a credit card. MakersPlace will take a 15% commission on primary sales and charge a 2.5% transaction fee on all secondary sales.
What currencies can you use on MakersPlace?
MakersPlace runs on the Ethereum blockchain and ether (ETH) is the main cryptocurrency used to make purchases. You need to use a third-party web3 wallet (such as MetaMask) to make transactions.
Unlike several other NFT marketplaces, you can also purchase a lot of the digital art on the platform with either PayPal or a credit card (through a third-party program called Stripe). To see if an NFT is available for purchase using fiat currency (USD, GBP, AUD, etc), click the “?” icon next to the price. It will tell you what currency the digital artist accepts.
What types of NFTs can you buy on MakersPlace?
The platform prides itself in finding talented artists to showcase on its site. While the creators may not work exclusively with the platform, the digital artwork is typically unique. You will be able to find the following crypto-collectibles when scrolling through MakersPlace:
- 3D Art – As you scroll through the site, you may see digital sculptures that are slightly moving. These differ from videos in that the object nearly seems tangible. You can often adjust the viewpoint with your mouse.
- Images – Whether they be photographs or digital graphics, still images are one of the most popular types of non-fungible tokens. Most of the art showcased will be a one-of-a-kind limited edition.
- Videos – Unique digital creations of short clips, animated videos, and films with background music.
The marketplace allows you to search through digital work by its status (is it an original mint?), price, by the digital creators, or even by top collectors.
How do you buy an NFT on MakersPlace?
To purchase a non-fungible token on MakersPlace, you must first create an account either with your email address or connecting through Facebook or Civic. At that point, complete the following steps:
Step 1: Link a web3 wallet (such as MetaMask) to the platform. If you don’t currently own ether (ETH), you can purchase it from one of these recommended platforms.
Even if you choose to pay with a credit card, you will still need a web3 wallet to store the purchased asset and pay any gas fees for the transaction.
Step 2: Find the digital asset you wish to purchase. Buy it outright or make an offer.
Step 3: Process the transaction. This can take a little time, especially if you pay with a credit card. Card transactions take a little longer to ensure no fraudulent activity.
Unlike some platforms such as OpenSea, MakersPlace allows people to use PayPal or a credit card (through the Stripe app) to purchase digital assets. Transaction and gas fees will still apply.
That being said, most people purchase non-fungible tokens by using a web3 digital wallet such as MetaMask. Transfer enough ETH to the account to pay for both the image and gas fees needed to finish the transaction.
How to store your NFTs
MakersPlace will never actually take custody of your non-fungible token. The seller will have it in their wallet until it is transferred on a smart contract via blockchain technology to the buyer.
You should always invest in a hardware wallet to ensure that your art collection remains secure. This will prevent your digital assets from being stolen if your browser or computer is compromised.
How do you sell an NFT on MakersPlace?
In order to sell an NFT on MakersPlace, you need to be invited to the platform. To get on their radar, you can fill out their invitation request form. Once accepted, complete the following steps:
Step 1: Mint your original NFT on the platform. Fill out a full description of your artwork to give potential buyers a better understanding of it.
Step 2: Set a fixed ETH price (all prices will be listed in ETH) or choose to accept potential offers.
Step 3: To get more eyes on your work, generate hype on Twitter or another social media platform.
Selling options on MakersPlace
In order to sell on MakersPlace, you need to be invited to the platform. Once you are allowed to mint your own digital art, you will be able to choose from one of the three main selling options on MakersPlace:
- Instant Sales – If you have a set price that you want for your work, you can set it. Buyers will be able to purchase it and complete the transaction.
- Offers – Potential buyers can also send in an offer to the digital artist, who will then choose to accept or decline it. Creators are also allowed to list their items without a set price but label it “Accepting Offers.”
- Timed Auction – Auctions are very popular on NFT platforms. In fact, they are the only option on one of MakersPlace’s competitors, SuperRare. Sellers can create an auction that lasts for at least 10 hours with a reserve price. Potential buyers can continually bid on the auction for its duration. If a bid is made in the last 15 minutes, the timer will be reset to 15 minutes indefinitely.
When using MakersPlace, you will want to be aware of the following fees paid to the platform:
- Sellers will need to pay a 15% commission to MakersPlace on a primary transaction (set up by the creator of the NFT) and 2.5% of every secondary transaction.
- When using a credit card, buyers will need to pay a 2.9% transaction fee.
In addition to the above fees, users who resell a non-fungible token as a secondary sale will pay a 10% commission to the artist.
You will also need to pay gas fees to the Ethereum blockchain which will vary in price throughout the day. These fees process the smart contracts, allowing the seller to receive the payment and the buyer to receive the digital asset. These fees are as follows:
- Minting Fee – An artist will need to pay a gas fee when minting a token.
- Accepting an Offer – Sellers will need to pay a transactional gas fee when accepting an offer.
- Instant Purchase – Buyers will pay a transactional gas fee when purchasing an NFT at the asking price.
Is MakersPlace safe to use?
MakersPlace is very safe to use in that it is non-custodial. Smart contracts ensure that only the seller and buyer have access to cryptocurrency and digital assets. MakersPlace simply acts as a service to facilitate sales.
While MakersPlace gives users the option to store credit card information, they aren’t privy to your personal details. The platform uses a third party called Stripe to securely process credit card transactions. Additionally, credit card sales take 48 hours to process to ensure no fraudulent activity.
That being said, you do need to be wary of phishing sites within the blockchain industry. When following a link, always ensure that you end up on makersplace.com and not a copied site set up by a scammer.
Pros and cons of MakersPlace
- Credit Cards allowed – MakersPlace allows people to not only pay with ETH, but also have the option to pay with debit or credit card and PayPal. This may open up a broader audience interested in purchasing your work.
- Exclusive art – The platform is very exclusive in whom they invite to the platform. While you can apply to be considered, only a few artists a month are chosen to join as creators.
- Simple UI – MakersPlace has a clean look that allows users to open and view all works of art. The platform is easy and intuitive to use.
- High royalties – Artists will earn 10% royalties on all secondary sales in perpetuity.
- High commissions – While the 15% commission rate is standard on many gallery-style marketplaces, you can find places to sell NFTs for a smaller rate.
Frequently asked questions
It is completely free to set up and use a MakersPlace account. Fees occur when you make a transaction. The platform takes a 15% commission on primary sales and 2.5% on all secondary sales.
Artists will also need to pay gas fees to the Ethereum network when minting an NFT. Gas fees are also paid at the point of transaction.
Artists will receive 10% royalties on any secondary sales of the non-fungible tokens they created. This allows the artist to potentially earn off their work every time the asset is resold.
Artists pay gas fees when minting a new piece of art. As far as transactional fees go, a buyer will pay gas if they purchase an NFT outright while the seller will pay if they accept an offer.