- Coinbase has opened a waiting list for a marketplace that lets users create, collect and trade non-fungible tokens.
- According to DappRadar, the NFT market has boomed this year, reaching $10 billion in sales volume in the third quarter.
- The move could be a way for Coinbase to branch out into new revenue streams – it currently relies heavily on exchange fees.
Coinbase is entering the NFT.
The cryptocurrency exchange said on Tuesday that it plans to launch a marketplace that lets users mint, store and trade NFTs, or non-fungible tokens. The company said users can sign up on a waiting list for early access to the feature.
NFTs are a kind of digital asset designed to represent ownership of online items such as rare art or collectible business cards. They are not replaceable, which means you cannot exchange one NFT for another like you can with bitcoin and other cryptocurrencies.
There has been a surge in the sale of such tokens this year. According to DappRadar, a company that tracks data on crypto-based applications, the NFT market topped $10 billion in transaction volume in the third quarter of 2021.
Notable purchases include the approximately $70 million spent for a digital collage created by Mike Winkelman, known as Beeple, and the approximately $3 million another person paid for the first tweet. .
Coinbase said its NFT marketplace, called Coinbase NFT, will include “social features” and tap into the so-called “maker economy,” a term used to describe the world of people who use videos and Others post content online.
Advocates say that NFTs are a way to provide fair compensation to artists who have seen their income decline due to the widespread availability of online media. On the other hand, critics see them as another speculative bubble in the crypto market waiting to burst.
Still, the move into the NFT space could be a way for Coinbase to branch out into new revenue streams – the company currently relies heavily on exchange fees. It will also pit the firm against other crypto start-ups such as Gemini, Binance and OpenC, backed by early Coinbase investor Andreessen Horowitz.
Last month, OpenSea admitted that insider trading took place on its platform. According to DappRadar, the company is the largest NFT market ever.