Coinbase Announces Marketplace for NFTs, Encourages Users to Join Waitlist

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by Ibukun Ogundare · 3 min read
Coinbase Announces Marketplace for NFTs, Encourages Users to Join Waitlist
Photo: The Coinbase Blog

With the exchange’s large customer base, Coinbase NFT can be positioned as a competitor for established marketplaces like OpenSea. 

Crypto exchange platform Coinbase Global Inc (NASDAQ: COIN) has revealed its plans to launch a marketplace for non-fungible tokens (NFTs) – Coinbase NFT. The company announced the upcoming NFTs marketplace on The Coinbase Blog on the 12th of October. According to the announcement, users can sign up to join the waitlist to enjoy early access to the new feature.

The NFTs market has taken an upward trend since the beginning of the year, recording massive trading volume. In the third quarter of this year, the market reportedly saw $10 billion in transaction volume. One of the outstanding NFT purchases is the Beeple NFT which sold for nearly $70 million in March. Also, the first-ever tweet by Twitter CEO Jack Dorsey sold for $2.9 million. While some believe that the NFTs market is here to stay, some critics believe it is just another speculative bubble in the crypto space that is yet to burst.

Coming Soon: Coinbase NFTs Marketplace

Amid the booming NFTs market, Coinbase said its marketplace would allow users to mint, collect, and trade NFTs. Initially, the marketplace will support Ethereum based ERC-721 and ERC-1155. The exchange company added that its new NFTs platform would include “social features” and step into the creator economy. The company explained:

“Coinbase NFT will be a peer-to-peer marketplace that empowers the imagination. With an intuitive design built on top of a decentralized marketplace, Coinbase NFT puts the art and artist’s experience at the forefront.”

Additionally, Coinbase assured that it would make it easy for artists to maintain creative control of their works via decentralized contracts and metadata transparency. Coinbase is looking to develop its NFTs community through social engagement. The platform will curate users’ feeds based on their interest and help people connect with like-minded fans and artists.

Coinbase entry into the NFT market will allow the exchange to explore another stream of revenue. Currently, the company relies majorly on exchange fees.

“Our ambition with Coinbase NFT is to allow everyone to benefit from their creative spark; to contribute to a future where the “creator economy” isn’t a small subset of the “real” economy, but a central driver,” added Coinbase.

Coinbase to Compete with Other NFTs Marketplaces

As of the second quarter in 2021, Coinbase has 68 million verified users and 8.8 million active users. With the exchange’s large customer base, Coinbase is positioned as a competitor for established marketplaces like OpenSea.

OpenSea is the largest NFT marketplace with a total transaction volume of $78.89 million. The giant NFT marketplace admitted to insider trading on its platform last month. OpenSea noted that one of its employees was involved in insider trading. In a statement, OpenSea said that the incident was “incredibly disappointing” and that it is “conducting an immediate and thorough review.”

At press time, Coinbase stock is down 0.85% to $247.20 at pre-market trading. Except for the last five days that COIN shed 0,42%, the exchange platform has been adding gainst over the months. The company has increased over 8% in the last three months and jumped nearly 1% over the past month.

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