OpenSea Ends Support for Binance Smart Chain: The Reasons Behind It

OpenSea Ceases BSC-based NFT Support: Official Statement

Commencing from August 18, 2023, users of OpenSea will no longer have the ability to create new listings or place offers on non-fungible tokens built on the BNB Smart Chain. This blockchain is a product of the renowned cryptocurrency exchange, Binance (BNB). The OpenSea team conveyed this significant decision via their official Twitter account:

“Last year we added several chains, including BNB Smart Chain (BSC), after seeing excitement from the wider NFT ecosystem. But as our space evolves, we need to align resources with the most promising efforts. We’ve decided the cost to continue supporting BSC outweighs the impact.” – OpenSea (@opensea) August 18, 2023

OpenSea, however, maintains some connection to the BNB Smart Chain. Users will retain the ability to view, discover, and transfer BSC-based NFTs on the platform. This decision is rooted in the understanding that sustaining BSC support may not be resource-efficient in the long run:

“Last year we added several chains, including BNB Smart Chain (BSC), after seeing excitement from the wider NFT ecosystem. But as our space evolves, we need to align resources with the most promising efforts. We’ve decided the cost to continue supporting BSC outweighs the impact.”

Nonetheless, the OpenSea team reaffirms its commitment to the development of multi-chain systems. Recent additions to the platform include support for Base, a novel Coinbase Layer 2 platform on the Ethereum network, and Zora, a blockchain with a specific focus on NFTs. Both these platforms are built upon the Optimism open-source framework.

OpenSea stands as one of the pioneering multi-blockchain marketplaces in Web3 history. Its reach spans platforms such as Optimism, Polygon, BNB Smart Chain, Arbitrum, Base, Ethereum, Solana, Avalanche, and Klaytn, as evidenced by the DappRadar tracker.

As previously reported by U.Today, the year 2023 witnessed the Blur marketplace dethroning OpenSea from its prominent position in the NFT trading platforms arena.

Backlash against OpenSea’s Royalties Policy Update

Amid a substantial drop in NFT trading volume, which accounted for over 90% of its total turnover, Blur emerges as the sole platform witnessing exponential growth across all its metrics.

In addition to discontinuing BSC support, OpenSea also underwent adjustments to its royalties policy. Effective from August 31, 2023, the platform will eliminate the Operator Filter and render royalties optional for newly-created collections.

This policy adjustment has encountered robust criticism from industry heavyweights. One such critique comes from OpenSea investor Marc Cuban:

“Not collecting and paying royalties on NFT sales is a HUGE mistake by @opensea. It diminishes trust in the platform and hurts the industry. And I say this as an @opensea investor.” – Mark Cuban (@mcuban) August 18, 2023