NFTs are now being as accurate as of the material world. These digital assets have been luring numerous investors over years. Coinbase, one of the biggest crypto exchanges at present, is not out of the craze over NFTs. The exchange has moved into this lucrative market, promising to create more mainstream for NFTs. Since first announcing the planned launch of Coinbase NFT in October 2021, more than 2.5 million people have reportedly joined the Coinbase NFT waitlist.
When Will Coinbase NFT Marketplace Launch?
There hasn’t been any official announcement yet. However, according to The Verge and TechCrunch, Coinbase will launch its NFT marketplace “later this year”. Meanwhile, Fortune said in October that the marketplace will launch within the next quarter or two. This suggests an early-to-mid 2022 release could be on the cards.
Competitors of Coinbase in the NFT Field
Coinbase’s direct competitor is undoubtedly OpenSea, which is known as the largest cryptocurrency exchange. Last September, OpenSea made more than $2.8 billion in NFT transactions. Besides, Coinbase will also have to compete with Binance and FTX, the other two crypto exchanges that have also launched the NFT board recently.
NFTs are kept on a blockchain ledger to track ownership without relying on records kept by banks, governments, or financial exchanges. Blockchains have also launched digital currencies which are stored in digital “wallets” and traded through Coinbase and other exchanges. One of those is Ethereum, which is also used for every transaction on Coinbase NFT Marketplace.
Coinbase NFT Marketplace Focuses on Social Media Engagement
By entering this potential market, Coinbase promises to add more value to the NFT market with a new social media dimension. “We’re designing for social engagement,” claims the company. “We’re adding social features that open new avenues for conversation and discovery.”
Just like Facebook or Twitter, Coinbase NFT will act as an intermediary providing personal profile, personal feeds, and recommending user-generated NFTs.
If the project is successful, NFTs can bring tremendous profits to Coinbase. Since its launch in April 2021, the exchange’s stock has failed to keep up with the dramatic growth of digital currencies like Bitcoin and Ethereum. The exchange has drawn the attention of regulators and investigators in the United States and abroad and faced many competitors including Robinhood and PayPal.
What Investors Should Beware
The NFT market still needs time to assert its sustainability. NFTs could become the standard way in which all assets – including physical ones like houses and land – are traded. In turn, they can also become obsolete like the Commodore 64 “home computer”.
Furthermore, NFTs are currently facing numerous legal problems. This may limit the market’s expanse in the future. Regarding OpenSea, this exchange has also faced insider trading and the crime of handling non-public information in an open market.
Copyright issues are also something that NFT holders should concern about. Photos, text, memes, and other private assets are easily copied and used online. Normally, no credit is given or money is paid for these copies. However, by assigning a unique digital identity to creation, the originator can benefit directly and immediately.