Coinbase Crypto Exchange Set to Foray into NFT Sector

Coinbase is set to launch its peer-to-peer marketplace for digital collectibles, or non-fungible tokens (NFTs). The US-based crypto exchange announced that it plans to allow users to discover, mint, purchase, and showcase their NFTs. The launch date for this platform has not been revealed as of yet. The Coinbase NFT platform will be competing with existing players in the sector like OpenSea and LooksRare among others. NFTs are supported on the blockchain technology and make for integral elements of the metaverse sector. NFTs can be inspired by a wide array of entities including gaming characters, music, and videos.

Coinbase announced the development on Twitter, while also revealing that it is building its NFT marketplace based on community feedback.

The company, founded in 2011, is now engaging with NFT creators to garner their insights.

The crypto exchange first opened up about its intensions to bring an NFT marketplace in 2021.

At the time, Coinbase had claimed that its NFT business could be more successful than its crypto arm, Fortune had reported.

Coinbase NFT has reportedly received over 2.5 million registrations on the waiting list to join the platform.

The volume of NFT sales crossed, the mark of $25 billion (roughly Rs. 1,84,700 crore) in 2021.

Of late, platforms like the New York Stock Exchange, Rakuten, and Parler have begun implementing their respective plans of foraying into the NFT sector.

It is, however noteworthy, that recent Google Trends data revealed that NFT-related search volumes dipped massively in March 2022.

Similarly, NFT resource NonFungible data has also indicated that trade volume per week for NFTs are on the decline. Its findings claimed that the average selling price of an NFT has declined to under $2,000 (roughly Rs. 1.5 lakh), compared with an all-time high of almost $6,900 (roughly Rs. 5.3 lakh) at the beginning of 2022.

The classification of NFTs is currently a topic under discussions in several parts of the world.

The US Securities and Exchange Commission is scrutinising creators of NFTs and the marketplaces where they trade to determine if some of the assets run afoul of the agency's rules.

South Korean and Indian authorities are yet to declare if NFTs fall under the virtual assets category.