How to develop white label NFT marketplace?

The growth of NFTs has also sparked the growth of NFT marketplaces as a business opportunity in the crypto space. It offers great opportunities for return on investment when created, and the sheer popularity of NFTs ensure that with proper marketing, any NFT marketplace can be turned into a business.

This has motivated the creation of white label NFT marketplace service providers, which offer the possibility of creating and managing an NFT marketplace for a company or individual.

Let’s take a look at the process, pros and cons of developing a white label NFT marketplace:

What is an NFT marketplace?

NFT marketplaces are digital platforms where NFT traders can buy, sell and browse through NFT collections. NFT marketplaces are the best places to invest in NFTs, as these can be stored, minted, and displayed in NFT marketplaces.

To use an NFT marketplace, you need three things:

First is a crypto wallet, which should be compatible with the blockchain network that supports the NFTs you want to purchase in the marketplace. If you’re trying to purchase Solana NFTs, then you should go to an NFT marketplace that supports Solana NFTs with a Solana crypto wallet.

Next, you’ll need cryptocurrency in the crypto wallet to purchase the NFTs, or even to sell them. That’s because NFT marketplaces have gas fees and service fees on top of the price of the NFT you’re aiming to purchase.

Finally, you’ll need to set up an account on the marketplace you’re trying to purchase the NFT from. If you’re trying to purchase NFTs on OpenSea, it goes without saying that you’ll first need to be registered on OpenSea itself.

What is a white label NFT marketplace?

White label means a service that’s made by a company but sold by another, without the original company’s branding.

Benefits of a white label NFT marketplace

The main benefits of developing a white label NFT marketplace include the following:

Development is easier than the development for the final product, and using a white label solution is comparatively cheaper than developing one from scratch.

Tokenization is less expensive on white label NFT marketplaces, and their native tokens can be traded at any time of the day, all around the globe.

Most investors prefer white label NFTs because of the lower costs and time requirement.

White label NFT marketplaces have the advantage of supporting existing standards of NFTs that allow you to create an NFT for digital assets. These include, but are not limited to tweets, images, or even physical goods virtually linked to digital versions of them.

They also facilitate the purchase of NFTs through auctions, similar to traditional NFT marketplaces. Users can purchase their desired NFTs for a reasonable price, with the value of them being evaluated through the bidding proposal.

At a macro level, white label NFT marketplaces are managed by white label developer teams. This means that attacks directed at the NFT marketplace can be defended by the developer team, and problems with the platform will be resolved by the team too.

Downsides of a white label NFT marketplace

On the downside, developing a white label NFT marketplace has the downside of only featuring the user-end features and it might be similar to any major NFT marketplace.

Differentiation is an important aspect of NFT marketplaces: there are so many doing the same thing that it’s difficult not to go for the best one at what it does: namely, OpenSea.

Most white label NFT marketplaces are built on famous blockchain networks, such as Ethereum, Solana, Binance smart Chain, Cardano and Polygon.

If OpenSea is already the biggest marketplace out there, with the best security features and the widest diversity selling NFTs, there’s little reason to go with another marketplace that only looks slightly different than OpenSea and might not even feature as many NFT projects as the Amazon of NFTs.

Why would a company develop a white label NFT marketplace?

Companies use white label NFT marketplaces to overcome skills shortage issues regarding NFT marketplace development. It allows them offer a wide array of services they might not have been able to provide their clients.

NFT marketplace white label services are deeper than simply hiring a freelancer or contractor and outsourcing the development. The white label developers will provide help with the marketplace and create content to fit within the hiring company’s requirement.

In short, a white label NFT marketplace is hardly any different from a normal NFT marketplace when it comes to functionality. What sets both apart is the developing team behind them.

It’s possible that hiring a white label NFT marketplace creates a bigger revenue stream to a business, and even compete with some of the heavy hitters of the NFT marketplace industry.

Hire a white label NFT marketplace development team.

If you’re planning on creating a streamlined NFT marketplace, you should opt for a white label NFT marketplace development service. If you’re planning on creating an augmented NFT marketplace, you should opt for creating your own team of developers or developing it yourself, even if it’s more time consuming or expensive.

There are many services offering the development of a white label NFT marketplace. For example, LBM Blockchain solutions is a Whitelabel NFT marketplace development company that creates fully customized NFT platforms.

Final words about white label NFT marketplaces

Big companies are all developing their own NFT marketplaces to be active in the crypto world. Meta is developing its own NFT marketplace integrated with Instagram, as are many major crypto exchanges such as Binance and Coinbase.

This doesn’t mean that smaller companies can’t participate and outsource a white label NFT marketplace development service to create their own. As a matter of fact, many companies are creating small-scale streamlined NFT marketplaces to compete with OpenSea, Rarible, Foundation and the like.

On the downside, not all white label NFT marketplace development services offer the option to differentiate the end-result marketplace from the giants, as they seek to create the most general service to cater to the widest audience.

Check out our other guides on What are NFTs to learn more about how NFTs work, and how you can benefit from them.