eBay enters the NFT game

The internet giant made a big step in becoming a platform for buying and selling digital collectibles.

The internet platform is taking its big collectibles selling platform into the realm of NFTs (Non-fungible tokens). The e-commerce platform acquired KnownOrigin, an NFT marketplace, hoping to get quickly and safely to the market.

Sales of NFTs skyrocketed in 2021 by 21,000% to over $17 billion, according to data provider Nonfungible.com. Some estimates of the size of the NFT industry are even higher, and market tracker DappRadar places last year’s sales of NFTs at roughly $25 billion.

Individual NFTs have sold for millions of dollars, with one selling for a stunning $69 million transaction facilitated by venerable auction house Christie’s. 

NFTs are backed by blockchain technology, which helps verify ownership and prevent duplication of said artwork.

By buying KnownOrigin and its technology, eBay’s platform will enable its users to buy and sell NFTs from across the world.

The deal should help to bolster eBay’s collectible-focused initiatives. Like the vault service, the company launched in June to protect its customers’ physical assets, including high-value sports cards, collectible figures, shoes, etc.

Is eBay a good buy right now?

The purchase of KnownOrigin doesn’t by itself make eBay a good investment, and it’s true that NFT transactions could boost sales on eBay’s platform. However, we should note that the NFT market’s growth has slowed considerably in 2022.

eBay has been losing buyers in recent quarters. Inflation is driving many consumers to pull back on their spending. And the collectibles market isn’t as hot as it was during the early stages of the pandemic.

So instead of buying, you may want to watch how eBay’s plans unfold first.