Coinbase is a leading exchange platform globally which has now revealed its plans to launch the NFT marketplace. Non-fungible tokens are the current trend in the market of digital-assets, so Coinbase targets NFT as it is the biggest trend. This not-yet launched NFT marketplace has already become a hot topic.
The record says that Coinbase’s NFT waitlist has received one million signups on its first day. It is not verified whether these sign-ups were duplicates or spam, so the firm is working on that. Moreover, the Vice president of Coinbase, Sanchan Saxena has posted a tweet stating that they are getting a lot of sign-ups and experiencing insane loads. Thus the team works on it to resolve issues.
We just announced the upcoming launch of Coinbase NFT (https://t.co/U1ymWieRT3). We are getting a LOT of signups – so grateful for all your interest 🙏🙏.— Sanchan S Saxena (@sanchans) October 12, 2021
We are seeing insane loads on our servers and our team is working hard to get this resolved. Check back soon! #Coinbase
Coinbase’s Next Frontier is “NFT”
As NFT has hit a different level in terms of popularity and adoption, Coinbase joins the list with Twitter and FTX to explore NFTs. Infact, the NFT sales for Q3 crossed $10.5B whereas the NFT sales for the first–half of this year exceeded $2.5B.
According to tracker Nonfungible, Daily sales tapped near $268 million in late August, while some NFTs sold for millions of dollars recently. As NFTs are the next investment vehicle Coinbase would have analyzed that NFT would be the right place to target. Thus, the firm may increase its business through the NFT marketplace as investors will flow to invest in NFTs.
Significantly, Coinbase warned in August that customers had decelerated at the start of the third quarter. Since then the firm has been trying to expand its revenue as their competitors like Robinhood Markets Inc. have initiated to attract crypto users. According to Bloomberg Intelligence’s Julie Chariell, NFTs are Coinbase’s “next frontier” which could help them to become a profitable business.
Additionally, Chariell, a senior fintech analyst has stated in a report:
“Fees are more likely to resemble retail cryptocurrency trading commissions than institutional commissions. At our 3 percent fee estimate, NFT trading might generate significantly more revenue per trading dollar while introducing significantly less volatility into Coinbase operations than a crypto trading platform.”
However, even the first day of the announcement on the launch of the NFT marketplace had a significant impact. If Coinbase officially launches, it will boost the exchange’s business in the near future. Coinbase has targeted the right choice to expand its revenue because NFTs are the trend in the digital market.
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