Rarible Review – An Introduction To The Most Popular NFT Marketplace


Rarible Review

Rarible Review – An Introduction To The Most Popular NFT Marketplace

Overview

Ticker RARI
Price 4.22 USD
Market Cap / Market Rank 8,824,730 USD / #392
All time high 10.91 USD
all time low 0.264878 USD
Circulating supply 1,655,238 / 25,000,000
Token Type ERC-20
Token Type Non-Fungible Tokens (NFT)
Website https://app.rarible.com/

Alongside DeFi, Non-Fungible Tokens (NFT) are one of the growing sectors in the crypto and blockchain ecosystem. An NFT is a digital representation of unique items like art, games, collectibles, etc. 

Rarible is an NFT marketplace for users to create and sell digital collectibles through its platform. Rarible facilitates users to create and mint their digital collectibles without the need for coding skills. In this Rarible NFT review, we examine the product and how does it work. We also take study the fundamentals of Rarible as well as the use-case for its native token RARI. 

What is Rarible?

Launched in early 2020 by Alexei Falin and Alexander Salnikov, Rarible is an open-source marketplace for users to mint, sell, and create collectibles. Any user can access the marketplace to create and display their artwork. Users can also collect the art pieces displayed by purchasing them in Ethereum tokens. 

It is a non-custodial marketplace and hence you are completely in possession of your tokens. The platform also offers Intellectual property (IP) rights to a user through a Proof of Provenance. Buyers and sellers can transact collectibles offered on the Rarible NFT marketplace with almost negligible costs. 

How Does Rarible NFT Marketplace Work?

A user can either create a collectible or explore the Rarible marketplace. The user needs to connect an Ethereum wallet like Metamask, Fortmatic, Walletlink, or Walletconnect to the Rarible’s interface. 

A user can either create a collectible using Rarible’s services or explore the marketplace to buy a digital collectible. One of the unique features of Rarible is that a user need not have any coding experience to create their art. 

It is an open-marketplace and hence can be accessed by any individual. The native token of Rarible is RARI. 

Pros and Cons of Rarible

Pros

  • Open-source and non-custodial marketplace
  • Facilitates users to create and mint their own digital tokens
  • A user-friendly experience for non-coders
  • Peer to peer trading with low costs of NFT’s or collectibles

Cons

  • Bad actors can manipulate the marketplace to falsely access RARI token
  • The project is still in its early phases and we could not find a whitepaper or roadmap
  • Only supports tokens of Ethereum blockchain network

How Can a User Access RARI?

The RARI token cannot be directly purchased from the Rarible marketplace. Instead, it is accessed by participating in the marketplace through different methods. 10% of the RARI total supply was airdropped to NFT collectors in July 2020. After this, the RARI token is distributed to the buyers and sellers of the Rarible marketplace.

Each week, on every Sunday, RARI tokens are distributed through a process called Marketplace liquidity mining. In this process, 50% of tokens are distributed to the buyers and 50% of tokens are distributed to the sellers of the Rarible market.

Evaluating RARI

The total supply of RARI is 25,000,000. The token is distributed in the following way:

Token Distribution

  • 10% tokens were airdropped in July 2020. Out of which, 2% were allocated to Rarible users and 8% were allocated to all NFT holders.
  • 60% of tokens are allocated to marketplace liquidity mining. Each week, 75,000 RARI tokens are released that are disbursed to the buyers and sellers. 
  • 30% of RARI tokens are allocated to the investors and the team. 

Token Utility

RARI is a utility token that has the following use-cases in the Rarible marketplace. 

  • Governance – One of the main utility of RARI token is that it performs as a governance token in the Rarible ecosystem. With RARI token, creators and collectibles can vote on the various functions including system update. The RARI token holders will have a vote on Rarible’s trading fees, its development, and new features to be implemented in the Rarible marketplace. 
  • Curators – Rarible marketplace aims to establish a community-driven marketplace through the holders of RARI token.
  • Featured artworks- RARI token holders can also give a boost and vote on a featured artwork among its marketplace. 

Funding

In September 2020, Rarible received funding from CoinFund, a Newyork-based blockchain investment firm. However, the details and amount of funding have not been disclosed. As per an official statement, the funding will be used to build a community-driven NFT marketplace that enables direct interaction between collectors and creators. 

Fundamental Analysis of Rarible

Project Fundamentals

Rarible is one of the firsts among an emerging NFT ecosystem. Moreover, it offers a unique opportunity for buyers and sellers of collectibles to interact with each other. Its platform is designed so as to cater to users from a non-technical background. By enabling an open-source marketplace, it incentivizes an inclusive community for anyone to participate in an NFT marketplace. 

Rarible also aims to transform itself into a Decentralized Autonomous Organization (DAO). With this purview, it has introduced a governance model with RARI holders. The token governance enables participation from the community contributing to the growth of the marketplace. 

Another benefit of Rarible NFT is its merger with the DeFi ecosystem. Rarible’s connection to Yearn Finance’s yInsure initiative facilitates issuing insurance in the form of tokens. yInsure allows users to take out tokenized insurance on various DeFi activities through the Rarible marketplace. 

The Team

The official website of Rarible does not provide much information on the team members or its founders. Upon external research, we found that Alexei Falin and Alexander Salnikov are the founders of the Rarible NFT marketplace. However, the website lacks data on its other teams of developers and marking division. 

Rarible Team

While there was not enough information available on Alexei Falin, its other co-founder Alexander Salinkov has more than 7 years of experience in technical background. Alexander has also been associated with some prominent crypto projects including Humaniq. 

Roadmap

One of the drawbacks of this project is that it lacks a proper directional roadmap of the Rarible’s future agendas. While one of its post details on some of the features that Rarible is investigating, there is no whitepaper or roadmap detailing any launches or time duration of these features. One of its posts suggests that the Rarible team is currently working on price discovery mechanism, DeFi NFT’s, mobile app, fractional ownership of products, etc. 

Is Rarible a scam?

No. Rarible is a genuine product that engages in building a marketplace for NFT tokens including the ones which cater to DeFi use-cases. It does provide an innovative mechanism for buyers and sellers to leverage the applications of blockchain technology. 

However, it also has a number of loopholes within its fundamentals as well as within its inherent product. For instance, its website lacks sufficient information on its product, its team, roadmap, etc. The Rarible marketplace also does not have a whitepaper to procure details on its product.  

Are there Risks Using Rarible?

Yes. One of the loopholes in the Rarible structure is the exploitation of the platform through wash trading. In this scenario, a user deceptively buys art from themselves in order to obtain the RARI token. Manipulation of the marketplace and RARI token can lead to devaluation of the project.

** Average Rating 8.2/10

Rarible Rating

A Note to Investors

Rarible has managed to establish a buzz and is currently one of the emerging projects in the NFT infrastructure. It provides a relatively simple and intuitive UI for all users to interact with. Also, its integration with the DeFi use-cases makes it a potentially interesting project to look out for. 

However, at the same time, the project has a long way to go. There are loopholes of the wash trading that attackers can exploit. The platform also needs to have a properly defined roadmap for its future agendas. Overall, Rarible is definitely one of the projects to keep one’s eye on in the near future.

Rarible Key Questions, Answered.

Where can I find the whitepaper of Rarible?

Rarible does not have a whitepaper listed on its website. 

On which exchanges is the project listed?

Its token RARI can be accessed through decentralized exchanges like Uniswap, Balancer, MXC etc.

What is the community stats of the project?

As of October 2020, there are 4 social media channels of Rarible. This includes Medium, Twitter, Telegram, and Discord.

Are there any competitors of the Rarible project?

There are no direct competitors of Rarible project as of now. However, a number of NFT tokens and marketplace are in-development as of October 2020.  

Author: Achal Arya
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.
Post your comment...
Achal Arya 299 Articles
I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.
Follow Achal @