Coinbase chief has shared his opinion on why Coinbase is planning to own an NFT platform. On November 9, Coinbase’s Q3 results showed that most of its $1.2B earnings were from transaction charges. Coinbase is also a NASDAQ-listed company with the ticker coin and its biggest digital asset exchange in America.
Coinbase CEO Reveals Details About The News
The introduction of an NFT platform will have a massive impact on Coinbase’s operation and might even eclipse the company’s exchange business. While being interviewed via a virtual interview with Bloomberg earlier this week, Armstrong said, “we believe that this sector will be huge for the virtual asset market even better than it currently is. It might even be bigger than the whole of our current business model.”
The number one digital currency exchange in the US revealed its plans to start its NFT marketplace last month. Thus, enabling its customers to sell their NFTs and conduct other NFT-related transactions. The platform will run like a social network where account holders can view new information in real-time and do everything else they would do on any social media platform. Following Coinbase’s announcement, tons of people have already signed up to try out the platform.
Over one million persons have already signed up on the waitlist after it was opened last month. As of this writing, there are almost three million persons asking to be included on the waitlist. Despite this vast number of interested persons on the waitlist, it is still only a fraction of the company’s 70m verified users.
Performances Of Other NFT Platforms
For context, DappRadar, an on-chain analytics platform, revealed OpenSea (the largest NFT platform globally) with almost 245k persons using its platform monthly had completed $1.8b worth of transactions over the past one month.
The astronomical rise of the NFT sector has attracted interest from the top digital asset exchanges in the world, including Coinbase. FTX and Binance are two other leading crypto exchanges that have launched their own NFT marketplace. FTX started its own two months ago, while Binance started theirs five months ago.
NFTs Sweeping Through The Gaming Industry
NFTs’ use of distributed ledger technology to authenticate a digital artwork enables players to uniquely own digital games such as the Axie Infinity, with transactions worth $2.5b completed on it. Through this ownership method, players can profit from selling their game characters in a business model now known as ‘play-to-earn.’
The technology also allows tracking of secondary NFTs to the owners or the original developers. Hence, players and sometimes, the original owners can earn from the secondary sales. It’s part of the leisure economy, where anyone can live a comfortable life regardless of location.
Interest in the NFT games sector rose astronomically following Axie Infinity’s $15m daily revenue despite generating $10K monthly revenue two months earlier. As more NFT game startups enter this space, they will eventually become so big that they will acquire startups in other sectors.