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Crypto Exchange Coinbase Jumps on the NFT Bandwagon

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Coinbase is diversifying its revenue stream. The leading U.S. cryptocurrency exchange is building a new non-fungible token platform called Coinbase NFT. The marketplace will give users the opportunity to “create, buy, sell and share NFTs,” according to the announcement.

Coinbase plans to launch its NFT platform before the end of the year. In the meantime, users can join a waitlist to start minting and selling these digital collectibles sooner than later. The waitlist hinges on customer referrals, rewarding users for spreading the word by giving them sooner access.

If early signups are any indication, Coinbase NFT is off to a solid start.

Coinbase is known for simplifying crypto investing for the mainstream, and its NFT platform will follow a similar model. The onboarding process seemingly does not require know-your-customer (KYC) protocols because users will self-custody their assets with their own wallets.

NFTs might be raking in billions of dollars in sales, but they are still considered a nascent market segment. Outside of crypto investors, they have mainly captured the attention of artists and celebrities. Coinbase is seemingly looking to change that. Coinbase NFT will start with the Ethereum network and then expand from there.

“The initial launch will support Ethereum based ERC-721 and ERC-1155 standards with multi-chain support planned soon after.”

Coinbase has been facing increased competition of late as more companies jump into the crypto trading fray. Online broker Robinhood is one recent example, and it has something Coinbase doesn’t — a zero-commission model.

NFTs are one of the latest crazes in the cryptocurrency industry, and while the market has its critics, it’s expected to stick around for the long haul.

Ups and Downs

Investors did not reward Coinbase for its NFT plans. In fact, the stock got punished in the session, falling nearly 3% to just below $250 per share.

With bitcoin trading above $50,000, however, the cryptocurrency market becomes increasingly appealing to investors, including those who might be catching a case of FOMO. Coinbase’s fee income, which is its biggest driver of profits, should benefit from higher trading volumes during the bull market.

Coinbase’s Q3 earnings are expected to come out on Nov. 9. NFT sales won’t be reflected until Q4 if the launch stays on track.

This article was originally posted on FX Empire

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