Coinbase is the newest exchange to enter the NFT space. Today, the market leader in cryptocurrency announced the launch of an initial queue for a future NFT marketplace. The site, dubbed ‘Coinbase NFT,’ would enable users to mint, acquire, and display their NFT collection.
The action is a precursor to what business officials indicated earlier this year when they expressed interest in launching a cryptocurrency app store, as reported by our sister network NewsBTC.
Coinbase’s first foray into NFTs will focus on Ethereum-based NFTs, with support expanding to additional blockchains in the future. Initial reports indicate that the platform would use self-custody wallets and will not need KYC verification as normal exchange transactions do. Sanchan Saxena, Coinbase’s VP of Product and Ecosystem, wrote and published the announcement.
Additionally, Coinbase’s move comes on the heels of competitors FTX and Gemini launching their own NFT markets. Q3 2021 NFT sales exceeded $10 billion after a record August and September, with a significant portion of those transactions happening on OpenSea. While OpenSea has mostly been the market’s largest NFT marketplace to far, the number of prospective rivals is growing daily.
After a rough start to its public listing on the NASDAQ earlier this year, Coinbase (COIN) seems to have found some stability in recent months. Nonetheless, it is still considerably lower than its initial public offering price.
There Is No Coincidence
The marketplace’s mission statement is “creative and creator-first.” Coinbase intends to do this by optimizing the marketplace for social interaction, an area where OpenSea has historically fallen short. The worlds of crypto and social interaction continue to converge and are obviously a natural match; Twitter just introduced crypto payment support for its tipping function, and TikTok recently entered the realm of NFTs as well. It is becoming more apparent that there is a crossover between blockchain technology and social media sites.
Coinbase is continuing to actively pursue new consumer product offerings. The exchange has been actively promoting Coinbase Lend, its yield-generating interest initiative. This was placed on hold last month as a result of SEC threats. Additionally, customer research organizations discovered that Coinbase has received the third-highest number of complaints among cryptocurrency wallet providers since 2017. The business is on the verge of surpassing 70 million verified users.
While Coinbase will lack the first-mover advantage that other exchanges will have, it will benefit from significant brand awareness — particularly in the United States.
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