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Coinbase is making an NFT marketplace platform, so what does it mean?
Recently Coinbase announced the launch of their own NFT marketplace and the reaction was overwhelmingly supportive. With over 2 million sign-ups to their waiting list within a single week, the announcement has proven to be popular in the NFT world. Despite there already being a number of NFT marketplaces, Coinbase is helping to bridge NFTs to the mainstream, something that will significantly further the reach and expansion of NFTs. Let’s delve deeper and find out exactly what this means for the space.
What is Coinbase?
Coinbase is popular for the buying and selling of cryptocurrencies. It is the second-largest cryptocurrency exchange with over 68 million users where in the second quarter of 2021, there were 8,800,000 transacting users. Coinbase is therefore the closest exchange to the mainstream and has helped many take their first steps into the crypto world.
This week Coinbase announced that they would be launching their own NFT marketplace platform, one that would let users mint, collect and trade NFTs. They outlined a focus on social engagement and connections, as well as a mission to simplify the process of entering the NFT space. Evidently, this move will also help to encourage new users to take their first step into NFTs.
“Just as Coinbase helped millions of people access Bitcoin for the first time in an easy and trusted way — we want to do the same for the NFTs.”
As of today, Opensea is the largest and most dominant NFT marketplace with 300,000 users, 1 million-plus collections, 34 million NFTs traded, and a volume of $4 billion. However, with over 2 million users already on the Coinbase waiting list, there is no doubt that this new platform will rival OpenSea for the top spot.
The Coinbase NFT market
The announcement of their new marketplace is a sign of inclusivity. Not only are they aiming to encourage usability, but they are also simplifying the complexities of the NFT and crypto space with their upcoming plans. Here is how. Sanchan Saxena discusses their plans in this thread.
Unlike some NFT platforms that only allow a selection of artists to mint their work, Coinbase on the other hand is non-exclusive and will be open to all creators.
“Our ambition with Coinbase NFT is to allow everyone to benefit from their creative spark; to contribute to a future where the “creator economy” isn’t a small subset of the “real” economy, but a central driver”
The premise of NFTs and their value stems from decentralization, this means that every NFT will be minted on-chain and the metadata will be stored on decentralized servers. This differs from web 2.0 where data is stored on publically owned servers.
With the Coinbase marketplace, there will be cross-chain listings all in one platform. You will be able to mint your NFT as well as sell it on any other marketplace, furthering their open approach.
Some platforms only use one cryptocurrency to allow their users to transact. Contrastingly, Coinbase is simplifying this process where collectors will be able to use their preferred self-custody wallet, their coin base account, or even via their credit card.
Furthermore, unlike many NFT marketplaces that solely utilize Crypto such as Ethereum. Coinbase is hoping to allow collectors the chance to buy NFTs from any chain.
The NFT marketplace is still prone to scams and security concerns, therefore we should be aware that this could get worse as more users come in. However, Coinbase has declared that education and security are two factors that they are considering carefully. With an aim of demystifying the NFT process and making crypto more accessible.
Coinbase is focused on helping to forge communities, from the collectors to the creators and the fans. They will do this through the creation of social feeds and social profiles that will encourage users to connect and create.
From what has been discussed, Coinbase is signaling a very flexible and open approach. With over 2 million of their users already on the waiting list, this tells us that there are a lot of people interested in NFTs. Coinbase will be the gateway platform for new users, once they learn the basics they will feel more confident to explore other platforms and NFTs.