It’s time to put a Full Stop! to your queries regarding NFT marketplace development costs. This article unlocks a few secrets that impact the cost of starting the NFT marketplace platform.
Nowadays, NFT marketplaces such as Rarible, and OpenSea have become the epicenter of funding & high revenue. According to statista.com, the NFT market revenue is anticipated to show an annual growth of 27.26% for the year 2022 to 2027.
This sign indicates that NFT is turning into gold. This is the reason why newbies started to invest in the NFT marketplace business. Before you begin with an NFT marketplace development, it is better to know about the cost of developing an NFT marketplace.
If you are in search of the NFT marketplace development cost, then you are at the right place. This blog explores the cost to create an NFT marketplace platform and factors that impact the NFT marketplace development cost
Legal and Regulatory Costs
Now let us explore more on how legal & regulatory compliance affects the NFT marketplace development cost.
- Research and Analysis. NFT marketplace has to follow data protection & privacy regulation based on their jurisdiction. Researching this needs time and legal professional assistance.
- Licensing and Permits. Acquiring a license & permission to launch an NFT marketplace impacts the development cost.
- Compliance with AML and KYC Regulations. You would require professional’s help and software to make your NFT marketplace comply with AML and KYC.
- Intellectual Property Rights. An NFT must agree with third-parties intellectual property rights. Thus the development team must confirm that the NFTs listed on the platform are authentic & legally valid.
- Data Protection and Privacy Regulations. Based on the jurisdiction, the NFT marketplace must have to follow data protection & privacy regulations. This needs legal experts and software involvement.
- SEC regulation is followed in the US for security offerings.
- GDPR is followed in the European Union for data protection & privacy.
- FATF regulation is followed by Jamaica, Cambodia, and other countries for AML & KYC compliance.
Technology Cost of Developing NFT Marketplace
NFT marketplace development cost differs based on the platform’s kind and purpose. This is because each type of platform needs different features, technologies, and integrations. Here let’s consider the 4 major types of NFT marketplace and their average development prices.
Open and premium marketplaces
This is the most common and widespread NFT marketplace. The platform has fewer premium features than the open market. The price of this NFT marketplace is $50,000 – $150,000. Example: OpenSea.
Curated and non-curated marketplace
A curated marketplace allows only authorized artists peeking to sell their work. On the other side, a non-curated marketplace allows both authorized and unauthorized artists to sell their works, The price of this NFT marketplace ranges from $80,000 to $200,000. Example: Spotify.
Nowadays, the gaming industry is closely connected with NFTs. To your knowledge, there is a marketplace that facilitates users to trade game assets. This type of NFT marketplace ranges from $100,000 to $5000, 000. Example: Decentraland.
This marketplace exactly suits the collector who wishes to sell/buy several digital NFTs. This marketplace ranges from $60, 000 to $250, 000. Example: NBA sports highlights are available in the form of NFTs, especially for sports fans.
Deal with the expense associated with server infrastructure required to host & run the NFT marketplace platform. The cost includes server specification, data center, server resources, database, bandwidth, scalability requirement, network infrastructure, disaster recovery, and hosting services such as cloud infrastructure or virtual servers, which require storing & serve the application, managing associated data, and handling user requests. The server cost may be approximately $10,000.
Software Development – NFT Marketplace
Software development refers to the expenses related to front-end and back-end development of NFT a marketplace platform.
Front-end Development – NFT marketplace
Front-end development involves the creation of UI and client-side scripting needed to make the website interactive. Based on the designer’s potential, and number of pages needed, the cost for front-end development range between $5,000 – $20,000.
Back-end Development – NFT marketplace
Back-end development involves the creation of database structure and server-side logic required to manage transactions, perform NFT management, and control user authentication, Based on the application’s complexity and scalability requirements, the cost for back-end development range from $10,000 – $50,000.
Simply to say, the software development cost might vary based on the complexity and scalability of an NFT marketplace. But it is advisable to work with the professional team to control the NFt marketplace development cost.
One more factor to consider is the development platform. The market is overwhelmed with numerous blockchain networks, each with its unique features, and requirements.
For instant, developing an NFT marketplace on Ethereum is more expensive compared to developing the marketplace on Polkadot or Solana. This means that based on the complexity of integration and selection of the blockchain network, the cost of blockchain integration can vary from $10,000 to $50,000.
In-additionally, tools & technologies utilized by the development team also affect the NFT marketplace development cost. Let see…
Tools & Technology
Tools and Technology have a significant impact on the NFT marketplace development cost. A higher level of complexity requires a complex tech stack. Moreover for enhanced technologies, undoubtfully you will be charged more.
For the NFT marketplace, the tech stack might incur Database, Performance tools, Blockchain platform, Frameworks, Token standards, Interfaces (UI/UX), Storage platform, Frontend framework, Bckend framework, Operating system, Wallet integration, and more.
From the above-mentioned list, you can opt for the tool & technologies according to your budget.
Complexity and features of the platform
One of the key factors that impact the NFT marketplace development cost is the complexity of features and design. Generally, a basic NFT marketplace has a simple UI, which facilitates users to buy/sell tokens.
Whereas on the other side, an enhanced marketplace has enhanced features like a smart contract, bidding, auction, and more functionalities. Complex design & features require more time & effort to complete the project which ultimately results in high cost.
An NFT marketplace that accepts numerous cryptocurrencies would make the marketplace easier to use. By integration of various blockchain network & wallet with the NFT marketplace facilitate the users to sell/buy NFT with their desired cryptocurrency. The number of cryptocurrencies you decide to support and the degree of integration required would determine the expense of cryptocurrency support.
- Security Mechanism – Security and audit are also a factor that impacts the NFT marketplace development cost. Let’s look at this in detail.
- Security Protocols – Including an SSL certificate, 2FA, and more security precautions will increase development expenses.
- Insurance – NFT marketplace needs insurance to safeguard against cyber-attacks and other security breaches.
- Compliance with Security Standards – Compliance with PCI DSS (Payment Card Industry Data Security Standard) for credit card transactions requires dedicated software and security professionals to assist.
To be precise, the complexity of security requirements decided the price of the security mechanism, approximately it may range from $5,000 – $15,000.
Testing is the systematic process of analyzing the performance, quality, and functionality of a product or software application to identify bugs, errors, defects, and other issues in the program. Various kinds of testing like Unit testing, Integration testing, System testing, Acceptance testing, and Quality testing is done at different level.
Based on the application complexity, numerous testing will be carried out which ultimately impacts the NFT marketplace development cost. Approximately the cost may range from $5,000 to $15,000.
Operational Cost of NFT Marketplace
Operational cost is nothing but the expenses incurred by an Organization or Businesses to maintain its daily operations in order to keep the business running smoothly. It incurs the costs related to producing/delivering goods or services and also deals with managing the overall activities of the business. Operational costs are recurring & ongoing in nature.
Let’s take a quick insight….
- Expertise. A team with high experience in the blockchain & NFT marketplace will require a high salary.
- The number of team members – A large team has the ability to manage workload. But hiring more expertise will increase labor expenses.
- Location – The location of the team will also impact the development budget. This is because of living costs, differences in salaries, and availability of skilled talents in several regions.
The complexity of the project will ultimately require more time & resources. Suppose, if you have a short deadline then you must require more specialists to meet them this results in increased development costs.
- Marketing & Promotion costs –Marketing and promotion are important factors impacting the development cost of an NFT marketplace:
- Advertising and PR – These campaigns require resources like marketing professionals, public relations personnel, and advertising space. Allocating a sufficient budget will increase the visibility of your NFT marketplace,
- Social Media Presence – Creating a strong social media influence will boost the marketplace towards success. However, you have to dedicate more effort and time to growing social media for more user engagement.
- Influencer Marketing. One of the best marketing techniques but the most expensive way to promote the NFT marketplace Via social media accounts and other channels.
If you wish to run your NFT marketplace platform for a long duration, then it is necessary to pay attention to the maintenance cost. You must always focus to ensure a smooth customer experience. Moreover, you have to periodically check your platform to confirm its performance and also fix the bugs that arise suddenly. Approximately for maintenance, the price may range from $20,000 – $30,000.
Training and education expenses
This type of expense depends on the factors like existing knowledge of the resource, the project’s complexity, and the resource you prefer to use. According to the recent updates, periodic training should be given to the developers, designers, and testers to keep them up to date with technologies & methodologies.
This helps to sustain work quality. Sharpening the employee’s skills will ultimately result in the quality of the product/service they developed. Approximately $1200 to $2000 is spent for every employee based on your location.
In case you are seeking to know about the NFT marketplace business, then head on to our article – How To Start an NFT Marketplace Business? So without ado, let us get started!
Estimate of NFT Marketplace Development Cost
“How much does it cost to create an NFT marketplace?” is the common question among cryptopreneurs. But there is no exact answer to that question. As the cost varies based on numerous factors.
From my experience, the cost to build an NFT marketplace may range from $50.000 to $450.000.
I hope from this blog you may gather knowledge about the factors that impact the NFT marketplace development cost. This helps you to estimate the cost to create an NFT marketplace platform on your own.
The growth of NFTs increases the popularity of the NFT marketplace. NFT marketplace has numerous benefits for both platform owners and users who take part in the platform. This popularity creates hype among newbies to start the NFT marketplace platform.
Before stepping into launching the NFT marketplace, it is better to understand the cost to develop the NFT marketplace platform. This helps you control the overall development cost. I hope that this article will give you knowledge about the cost spent to develop an NFT marketplace platform. It is better to get knowledge transfer from an NFT marketplace development company before developing an NFT marketplace from scratch.
Frequently Asked Questions
How much does NFT marketplace development cost in 2023?
The average cost to develop an NFT marketplace may range from $50,000 – $500,000 based on various factors like tools & technologies, the NFT marketplace niche, the complexity of the marketplace, the development team, and more. It is better to consult an NFT marketplace development company to know about the exact cost of your project.
Is it possible to tokenize anything into NFT?
Yes, definitely according to the user’s wish, all the assets can be tokenized into NFT if and only if it is available in digital form.
Which are the most famous NFT marketplace platform?
How to build an NFT marketplace?
If you plan to build an NFT marketplace. Here are some of the key steps which guide you through the development process.
- Choose niche
- Plan & Design
- Choose the Blockchain
- Setting Up Smart Contract