• With a token, a new NFT marketplace takes on OpenSea

  • Infinity, a new NFT marketplace, has launched and is aimed at OpenSea users. Infinity is reusing some of OpenSea’s smart contracts in order to entice OpenSea users with an airdrop.

    The newest entrant into the raging market for non-fungible token trading intends to compete directly for users with market leader Opensea. The team behind the Infinity project is also hoping that a token and some well-known backers will help it compete with its larger rival.

    Infinity, which officially launched today, bills itself as the “FTX of NFTs,” implying that it wants to be a community-driven, anti-establishment alternative to more mainstream NFT platforms.

    Some major NFT influencers, including NFT whale 0x b1, have already backed the project.

    It will be difficult to compete with OpenSea, as users have flocked to the a16z-backed platform. According to data compiled by The Block, the marketplace saw monthly trading volumes of more than $2.72 billion in September. It also has a $100 million war chest from a recent fundraise and has just launched a mobile app. It also has a diverse set of investors, including Naval Ravikant, Mark Cuban, and Alexis Ohanian.

    However, OpenSea has had its share of setbacks, including bugs and the departure of a longtime executive who traded NFTs with insider knowledge.

    Airdrop of vampires

    Infinity hopes to cut into some of those volumes by airdropping its tokens to OpenSea users. According to press materials shared with The Block, “10% of the governance token supply ($NFT) will be distributed to existing OpenSea users who transacted before October 4th, 2021 11:59PM UTC.”

    “The amount of the airdrop is determined by tiers derived from OpenSea transaction volumes. The airdrop becomes available after 30 days of transaction activity on the Infinity marketplace. Once the 30-day period has expired, the token is transferable.”

    In some ways, the project is following in the footsteps of SushiSwap, the automated market maker SushiSwap. SushiSwap, a clone fork of Uniswap, launched a so-called vampire attack to entice more than $1 billion in liquidity from its larger rival. Users had to deposit Uniswap LP tokens to use SushiSwap, which quickly siphoned off a large portion of Uniswap liquidity.

    Infinity, like Sushi, is based on OpenSea and reuses some of its smart contracts.

    “Overall, we expect to be feature parity with OpenSea on the market,” said project co-founder Garrett Allen. “However, we intend to build a platform with more integrations and tools for evaluating, providing liquidity, and adding utility to NFTs.”

    Still, one market insider said that reusing OpenSea’s smart contracts didn’t make sense because they were built on old Solidity. It could pave the way for OpenSea to target the project.

    “The contracts are audited/verified, so there’s more trust in using them,” Allen explained. “OpenSea users don’t need to re-initialize their wallets or tokens if they’ve already listed, so they don’t have to pay gas fees to list and can keep their NFTs listed on OpenSea as our platform grows.”

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