DUBAI: OasisX, the nascent curated multichain non-fungible token marketplace that aims to drive NFTs adoption in the Middle East and North Africa region, is embracing Web3 in a number of ways, integrating NFTs, blockchain and cryptocurrencies within its platform.
One of the company’s co-founders, Jimmy Ebrahim, who described the new era of the Internet as a digital renaissance, said: “Web3 has four pillars: blockchain as a secure infrastructure, proof of ownership and provenance.” Tokens such as NFTs for proof, cryptocurrencies for stores of value and transactions, and the Metaverse, which is a combination of augmented reality and virtual reality.
However, Web3 adoption has seen a slowdown as cryptocurrency and NFT scams become rampant in markets such as the US. Despite the promise of a more secure internet, cryptocurrencies can be used and abused for fraudulent activities, as the recent FTX scandal showed.
Founded in 2019 by Sam Bankman-Fried, FTX is a cryptocurrency exchange that has grown in popularity thanks to celebrity endorsements and an aggressive marketing strategy.
In November, crypto news site CoinDesk published the balance sheet of Alameda Research, a crypto investment firm owned by Bankman-Fried, showing that Alameda owned a significant amount of digital currency created by FTX called FTT.
“While there is nothing wrong or false about it, it shows that Bankman-Fried’s business giant Alameda rests on a foundation invented by a sister company, not a independent assets such as fiat currency or other crypto,” the article said.
However, if FTT declines in value, Alameda will essentially be at risk of bankruptcy.
The article launched a series of legal actions against Bankman-Fried, FTX and the celebrities who promoted the crypto exchange, resulting in the largest financial scam ever.
The incident has slowed the adoption of crypto, reduced trust in the industry, and cost many people a lot of money. Although Ibrahim said it had “damaged the industry”, he pointed out that it had acted as a purification of sorts.
He added: “Foul play should be highlighted, and such players should be removed from the playing field so that the environment is more secure and safe for natural development.” He said that, after all, that was the future where “decentralized finance is going to change the world for the better.”
According to blockchain data firm Chainalysis, the global NFT industry alone is set to reach a market capitalization of $41 billion by the end of 2021.
Ibrahim said the space was also growing to include non-fungible assets, which would see it expand into the real world. For example, the real estate and NFT industries are merging with many assets being sold as NFTs.
In February, US-based real estate company Propy sold an NFT-backed property, a 2,164-square-foot home in Florida, for $653,000, with the winning bidder receiving an NFT as proof of home ownership.
“This is the future we want to tap, facilitate and accelerate because it only makes sense to secure everything on the blockchain,” Ibrahim said.
OasisX aims to bring a new layer of security and accessibility to the world of NFTs for both artists and businesses in the MENA region.
Ibrahim began working on the platform more than a year ago with co-founders Najib Khanfar and Ramzi Manimaneh, and officially launched it at the NFT LB event in Lebanon in September.
The event featured the work of 23 artists, half of which were sold out during the event, as well as serving as a platform for panel discussions, movie screenings, and AR and VR experiences.
Ibrahim said that the company’s marketplace only has experienced artists, unlike platforms like OpenSea, which avoid any “fake projects”.
“We want to protect the arts community with the right projects,” Ibrahim said.
Available in English and Arabic, the platform currently has 250 vetted artists and aims to grow into the largest MENA-based market. It also works with galleries through a referral program where the gallery receives royalties on the first sale of any artist who joins and reviews on the platform.
It charges only 2 per cent in transaction fees – the lowest in the industry – because “artists should make the most of their hard-earned sales”, Ibrahim said. That’s why, he said, the company will never remove royalties.
Often, the technical skills required to create NFTs can serve as a barrier to entry for both artists and brands. Therefore, the company created LaunchX, an NFT generator powered by artificial intelligence.
Acknowledging that some are still wary of NFTs and cryptocurrencies, the company has integrated options such as paying via credit card to make it more accessible.
The entire process is secured through a smart contract on the blockchain. Ibrahim said it was safer than using traditional banking, especially in countries like Lebanon, where the banking system was in shambles, leaving many people unable to use credit cards.
He added that it was nearly impossible to corrupt information on the blockchain, making it more secure than traditional transaction methods used in Web2.
Despite the resistance and reluctance, Ibrahim predicted that Web 3 and cryptocurrencies would become the norm in the next five to 10 years, as people still use debit and credit cards today.