The world’s leading cryptocurrency exchange Coinbase has announced its entry into the NFT space with the upcoming launch of an NFT marketplace, promising to bring more surprise to the sector.
The initial post made by Coinbase NFT, the official Twitter account of the incoming NFT marketplace, revealed that the team behind this new platform was involved in meetings with more than 100 content creators as well as feedback collecting for the launch of its new marketplace.
Wen Coinbase NFT? Soon.
We recently met with 100+ creators and we’re continuing to build the product based on community feedback. We appreciate your patience and can’t wait to show you what we’re cooking up.
— Coinbase NFT (@Coinbase_NFT) March 14, 2022
NFTs Are Massive
Further details on the official launch date haven’t yet been disclosed. However, it’s clear that the new NFT marketplace will come with a set of unique features and innovative tools that will definitely set the marketplace apart from others.
Coinbase’s entry into the NFT arena was first revealed last year. At the time, the exchange said in a blog post that it was preparing to launch an NFT marketplace.
This new platform will compete with existing market leaders such as OpenSea, Binance, and the FTX platform Solana NFT.
The announcement that Coinbase is ready to build its own NFT marketplace has piqued the interest of the crypto community. There aren’t many specifics on the official website yet, and the only way to find out more is to sign up for the waiting list.
Not Global – Yet!
NFTs on Coinbase will initially serve only US consumers, but the company intends to expand globally. Coinbase NFT will first focus on Ethereum standard ERC-721 and ERC-1155 tokens.
In the long run, the exchange will gradually integrate multi-chain support.
The “social function” of the Coinbase NFT is the main emphasis, with the goal of encouraging interaction between content creators and users and developing a strong community.
According to Coinbase CEO Brian Armstrong, NFT has expanded the regular scope of cryptocurrencies and created its own sector.
This motivates Coinbase to develop a marketplace capable of providing broader user experiences, comparable to social apps such as Instagram or Facebook.
“We are very excited about NFTs, this is going to be a very large area for crypto in the future, and it already is today.”
At the time of the initial announcement, about 1.1 million people were striving for early access to the NFT platform.
Coinbase’s Vice President of Product, Sanchan Saxena, stated that traffic volume to the waitlist had briefly impacted the site’s network. At this point, the number of users who have registered on the waiting list has topped 2.5 million.
Because Coinbase is one of the most popular cryptocurrency exchanges in the world, its key advantage is its user base.
If Coinbase’s user base continues to grow at its current rate, the Coinbase NFT platform will be fully capable of competing with NFT titans such as OpenSea.
According to DappRadar data, OpenSea, Coinbase NFT’s main competitor, has suffered a 15% decline in internal and user transactions during the last 30 days.
Even the trading volume decreased by 42.65%. Coinbase appears to have seized a perfect opportunity to showcase and arrange for the introduction of the new platform.
Never Coming Back
While OpenSea has had few downsides, the NFT sector remains competitive due to the growth of rival platforms. In October 2021, FTX, another Coinbase NFT competitor, launched its own NFT platform for US consumers.
Users will be able to generate, trade, and sell NFTs on the Solana-based marketplace, but they will be subject to the same KYC rules as Coinbase. FTX has recently made some great initiatives, the most prominent of which is a strategic partnership with top payment processor Stripe.
Binance’s BSC-based NFT platform is another notable name in the sector.
The NFT sector is becoming increasingly competitive as centralized exchanges seek to capitalize on possible commercial prospects.
The involvement of numerous enterprises in the development of an NFT marketplace may result in market saturation.
Take Nifty Gateway as an example. The NFT marketplace had a strong run in early 2021.
However, as new competitors entered the space, such as OpenSea and Rarible, the platform’s trade and mining volumes plummeted.