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• Coinbase NFT has community feature that lets users connect and engage with others
• More users will be added from waiting list over next three to five weeks
Coinbase Global Inc (NASDAQ: COIN) launched the beta version of its NFT marketplace on Wednesday. This comes at a time when the niche digital asset market is showing signs of cooling.
The US crypto exchange platform first announced the digital asset marketplace would support Ethereum-based NFT trading in October, with a social-media spin that could distinguish it from competitors.
Coinbase NFT will initially be available for a small number of people in the United States, and over the next three to five weeks, more users will be added from a waiting list as the platform is tested.
“This product is more than just buying and selling, it is about building your community,” Coinbase VP of Product Sanchan Saxena told reporters in a press briefing.
“It is about making sure that you can connect and engage with them on the platform. One other thing I mentioned in the beginning was that it’s a very social marketplace.”
NFT bubble shrinking
Non-fungible tokens (NFTs) are crypto-assets that use blockchain to record the ownership of digital files such as an image, video, or piece of text.
These digital assets exploded in popularity in 2021, as mainstream investors and companies started embracing cryptocurrencies such as Bitcoin.
Although some NFTs have been sold for millions of dollars worth of cryptocurrency in these auctioning marketplaces, the growth has slowed in 2022.
The largest NFT marketplace, OpenSea, saw its sales halving in two months.
Sales on the platform reached nearly $5 billion in January, taking a giant leap from the $8 million a year before, but dropped to around $2.5 billion last month, Reuters reported.
Moreover, NFTs are largely unregulated, and scams, fakes, and market manipulation reports are often seen. Coinbase said it would allow copyrighted or fraudulent content to be reported.
Picture Credit: NFT Drops Calendar
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