Coinbase has one product that’s performing even worse than its sluggish stock: its NFT marketplace
Three months in, Coinbase’s NFT platform is proving to be a complete failure.
The largest U.S.-based cryptocurrency exchange and one of the industry’s oldest centralized marketplaces seems to have completely botched the launch of its social marketplace for non-fungible tokens, Coinbase NFT.
While the exact reasons for Coinbase’s apparent failure are difficult to pinpoint, arriving months late to the NFT bull cycle (and four months after it planned to launch), spotlighting dubious NFT projects like MekaVerse (a once-hyped collection that was accused of rigging its drop and ultimately tanked), and gating the platform’s launch certainly didn’t help.
Coinbase launched its NFT marketplace in hopes of attracting the masses and differentiated itself from its competitors by styling itself as the “Web3 social marketplace for NFTs.” However, it appears that the product arrived too late for anyone to care.
The best month to date for NFTs was January, when the total monthly trading volume topped about $17.1 billion. That’s more than the total trading volume recorded since Coinbase NFT launched. While interest in nfts has decreased, coinbase has announced waiting lists, perhaps this situation may have damaged the platform. Pre-launch, the platform had about four million users waiting in the queue to try it, while today—three months in—it has recorded only about 8,668 users in total. Looking like disaster for coinbase.
Despite launching five full years before the now largest cryptocurrency exchange in the world, Binance, and seven years before its speedily encroaching competitor, FTX, Coinbase has started to lose its industry relevance and market share over time. After listing on the nasdaq , its shares dropped 83% , which indicates that coinbase has not kept up with its times