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Starting April 18, Binance’s NFT marketplace will discontinue its support for trading and depositing Bitcoin Ordinals.
Binance is gradually reducing its backing for Bitcoin nonfungible tokens (NFTs) shortly after their introduction to its marketplace. In an April 4 blog post, Binance revealed plans to “simplify product offerings” on the Binance NFT platform.
As a result, the marketplace will discontinue its support for trading and depositing Bitcoin Ordinals on April 18.
Moreover, effective April 10, 2024, the Binance NFT marketplace will no longer provide airdrops, perks, or functionalities associated with Bitcoin NFTs.Bitcoin Ordinals, also recognized as Bitcoin NFTs, enable the embedding of digital content such as art, text, or video directly onto the Bitcoin blockchain.
Although data embedding has been a feature of the Bitcoin protocol for some time, its popularity surged with the introduction of Ordinals in late 2022.
This protocol, developed by Casey Rodarmor, enables unique digital artworks to be directly integrated into Bitcoin transactions, akin to Ethereum’s nonfungible tokens (NFTs).
Binance specifically highlighted that users of Runestone NFT who fulfill the criteria for the airdrop should withdraw their tokens by April 10.
The blog post stated, “Users are advised to withdraw these NFTs by 2024-04-10 10:00 (UTC), to ensure they still have the opportunity to receive any associated tokens, utilities, and benefits after 2024-04-10.”
The community was taken aback by the decision. Binance had only introduced support for Bitcoin NFTs a year prior, in May 2023, expanding its ecosystem to the Bitcoin network and promising collectors more opportunities.
The significant volume of NFT transactions has led to congestion on the Bitcoin network multiple times since its inception. This has resulted in increased fees and slower processing times as more transactions are validated on-chain.
According to data from Dune Analytics, the network has accumulated over 64 million inscriptions to date, generating over $423 million in transaction fees.
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