Coinbase launches NFT marketplace as crypto market share declines

Major crypto exchanges are entering the NFT game. Pinterest

June, Coinbase co-founder Fred Ehrsam Strict prediction 90 percent of that Non-substitutable token, Or NFTs are worthless in 3-5 years. Nonetheless, the crypto trading platform he left behind in 2017 couldn’t resist the hype and announced this week that he would launch his own NFT marketplace.

The company announced on Tuesday that a peer-to-peer marketplace called “Coinbase NFT” will allow users to create, discover, trade and showcase their entire NFT collection in one stop.

The initial launch will support the Ethereum-based ERC-721 and ERC-1155 standards, with support coming soon to other blockchains.All NFTs will be “on the chain” Coinbase saidIt ensures metadata transparency and allows artists to maintain full control of their work through decentralized contracts.

“Our mission at Coinbase is to increase the economic freedom of the world,” wrote Sanchan Saxena, Vice President of Products at Coinbase. Company blog post Tuesday. “By allowing more people to participate in the creator economy and benefit from their work, NFTs have an important role to play in this mission. Their influence is already felt. I am. ”

NFT trading volumes and average selling prices have skyrocketed in recent months. According to crypto market research sites, total NFT sales in the third quarter exceeded $ 4 billion, nearly 10 times more than in the previous quarter. Weekly sales exceeded $ 1 billion for the first time in late August.

Most of these transactions were done primarily on OpenSea, a platform that supports NFT transactions. Coinbase is not the only major cryptocurrency exchange to enter the game. Competitors Binance, FTX and Gemini have all announced their respective NFT marketplaces.

“Coinbase is rapidly losing market share and we’re seeing significant take-rate compression,” said Christian Bolu, an analyst at Autonomous Research. Said in the client note Wednesday morning. “As competition intensifies, these trends are expected to accelerate (Robin Hood, FTX and Binance are the most dangerous).”

“More worrisome is that Coinbase lags behind almost all crypto innovations (including altcoin, derivatives and NFTs),” Bolu added. “If this trend continues, Coinbase can quickly lose relevance, as Netscape did in the early Internet era.”

In pre-market trading on Wednesday, Coinbase’s share price fell 1% to $ 248.30. Stock prices have fallen 24% in the last six months.

Crypto FOMO: Coinbase finally launches NFT marketplace in fierce competition

Coinbase launches NFT marketplace as crypto market share declines

Source link Coinbase launches NFT marketplace as crypto market share declines

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