Learn more about NFEX in this article: Is NFEX a decentralized exchange?

Various NFT platforms or projects are increasingly favored by capital. The NFEX introduced to you today is an NFT trading platform. It is not a decentralized exchange. It wants to be similar to CoinMarketCap or DefiPulse in the NFT field. NFTX may gradually develop into a market and issuance website for all NFT funds, and will provide real-time prices, trading volumes, TVL data, etc. for each fund.

Is NFEX a decentralized exchange?

NFEX is a centralized exchange, while NFTX is a platform dedicated to creating market liquidity for non-fungible tokens (NFTs) with low liquidity. Users can deposit their NFTs into NFTX’s vault and mint a fungible ERC20 token (vToken) that represents a claim to different assets in the vault. Additionally, vTokens can be used to redeem specific NFTs from the vault.

Anyone is eligible to create a vault for NFT assets on Ethereum. After the vault is created, other users can deposit standard-compliant NFTs into the vault based on conditions and generate a fungible NFT-backed token named "vToken." Users can deposit NFT into an existing vault or a vault created by themselves, and issue a fungible vToken, which represents a 1:1 claim right to the NFT in the vault.

Users can centralize their minted vTokens in automated market makers (AMMs) such as Sushiswap to create liquid markets for other users to trade. As liquidity and trading volume increase, the price of NFT-backed vToken gradually forms and determines the "floor price." The floor price represents the lowest price for a specific NFT. Users can confirm the floor price by minting and selling vTokens in markets where they believe the NFT is overvalued.

How about NFEX exchange?

NFTX is a platform designed to convert NFT collectibles into supported ERC20 tokens. These tokens are called Vault tokens, and like other ERC20 tokens, they are interchangeable and combineable. With NFTX, you can leverage the exchange to directly create and trade tokens based on your favorite collectibles, such as CryptoPunks, CryptoKitties, and Avastars. This innovative approach gives collectible holders more flexibility to manage and trade their NFT assets, and provides more liquidity and interoperability for the entire NFT ecosystem.

NFTX’s mission is to become the primary issuer of NFT vault tokens, allowing anyone to trade and invest in the NFT market, without the need for specialized knowledge. In this way, NFTX will act as a gathering point for NFT assets.

NFTX is a project established by a Decentralized Autonomous Organization (DAO) to become a major NFT liquidity center. The project is built in close collaboration with community members, contributors and the core team. NFTX adopts an open organizational structure, which means that anyone can join and provide professional knowledge and resources to promote the development and success of NFTX. This openness and collaborative spirit allows NFTX to attract people from all over the world to participate and jointly promote the development of the NFT market.

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