Coinbase announces plan to launch an NFT marketplace ‘soon’
- Coinbase has opened a waitlist for a marketplace that lets users mint, collect and trade nonfungible tokens.
- The NFT market has boomed this year, with sales volume topping $10 billion in the third quarter, according to DappRadar.
- The move could be a way for Coinbase to branch out into new revenue streams — it currently relies heavily on exchange fees.
Coinbase is set to launch its peer-to-peer marketplace for digital collectibles, or non-fungible tokens (NFTs). The US-based crypto exchange announced that it plans to allow users to discover, mint, purchase, and showcase their NFTs. The launch date for this platform has not been reveal as of yet. The Coinbase NFT platform will be competing with existing players in the sector like OpenSea and LooksRare among others. NFTs are supported by blockchain technology and make integral elements of the metaverse sector. NFTs is inspire by a wide array of entities including gaming characters, music, and videos.
Coinbase is launching a marketplace for NFTs
Coinbase said its NFT marketplace, called Coinbase NFT, would include “social features” and tap into the so-called creator economy, a term used to describe the world of people who make money posting videos and other content online.
In recent months, NFTs have garnered greater regulatory scrutiny. Record trading volumes at the start of the year coincided with a marked increase in regulatory activity. Several jurisdictions have raised concerns over NFTs and the need for greater regulatory oversight. Despite the increase in regulatory chatter, mainstream names have flooded into the virtual world. Big industry names entering the NFT space come from the fashion, healthcare, music, sport, and retail sectors. Some of the biggest brands include Sony, Walmart, Victoria’s Secret, Nike, the NFL, the MLB, the NBA, and UFC fighting.
The heightened interest in NFTs, rising number of trademark applications, and its continued compliance with US laws should position Coinbase NFT as a market leader. Following news of KYC requirements for the next Bored Ape Yacht Club release, Coinbase will also have the appropriate infrastructure in place to hit the ground running should US regulators impose tighter measures to protect investors.
Advocates say NFTs are a way to fairly compensate artists who’ve seen their income decline due to the widespread availability of media online. Critics, on the other hand, view them as another speculative bubble in the crypto market that’s waiting to burst.
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