Coinbase has been teasing the proposed launch of its new NFT platform for a while, and after an extended waiting period, we have concrete news from the company
Coinbase: Better late than never
Coinbase is one of the most significant players in the Fintech space, and in October 2021, the company shared plans to enter the NFT arena. To say that the announcement went viral would be an understatement; it spread like wildfire across the NFT community, with many fans of Coinbase excited about the prospect of the company entering the NFT marketplace space.
Since its announcement, Coinbase has partnered with some of the most popular NFT collections, including Adidas, Lazy Lions, CryptoPunks, Doodles, Cool Cats, CryptoKitties, and Bored Apes Yacht Club.
Most people were unsure about when Coinbase will officially debut its marketplace, which led to many speculations. On 14 March 2022, Coinbase finally shed some light about its NFT marketplace progress through this tweet, “Wen Coinbase NFT? Soon. We recently met with 100+ creators, and we’re continuing to build the product based on community feedback. We appreciate your patience and can’t wait to show you what we’re cooking up.”
The news by Coinbase is undoubtedly exciting, but it does little to provide more information about a possible launch timeline. All we know right now is that the company has been working with creators, and the product is still in development. Many industry insiders feel that the Coinbase NFT project has taken more time than it should, affecting its future NFT-related ambitions.
Over $1 billion in extra revenue
According to a recent report by John Tadaro, an analyst at Needham Equity Research, Coinbase’s NFT segment could add up to an extra $1.26 billion in additional revenue to the company. Additionally, Brian Armstrong, CEO of Coinbase, shared that the NFT market is ripe during an earnings call.
Claims are swirling around that the company has over a million customers on its NFT marketplace waiting list. Coinbase had total revenue of $7.4 billion in 2021, and Todaro’s best-case scenario estimation of $1.5 billion in total NFT volume, $450 million in post-annual revenue, and a baseline fee of 2.5%. The reports by Todaro seem a little out of the ordinary, and it is a best-case scenario expectation; time will tell whether the analysis is worth it.
What can Coinbase expect in the NFT marketplace space?
Coinbase is ready to put the finishing touches on its NFT marketplace. When the company finally debuts in this space, it can expect a few things, including that the market has developed tremendously over the last few months.
Established NFT marketplaces like OpenSea and Rarible have made tremendous headway in the space, and catching up with the front runners might be easier said than done for a company like Coinbase. It’ll be exciting to watch Coinbase and other new companies like Magic Eden try to carve out their niche in the NFT space.