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Coinbase Starts To Test NFT Marketplace

Oladotun Ayotomiwa

With the debut of its long-awaited NFT marketplace, Coinbase (COIN) hopes to foster a sense of community among buyers and sellers by making it easier for them to interact with one another. In the words of Coinbase's vice president of products, "This product is more than simply buying and selling, it allows us to build a bigger community of NFT lovers.”

User profiles may be curated with NFTs they've made, and NFT holders and sellers can begin dialogues with one another. Like Twitter, users may create a following and find other collectors and artists via the use of hashtags and user profiles. A Coinbase NFT creator, Lucréce, stated,

"The community component has become a tremendously vital part, nearly as important as the art itself. "When you build a community, those people become your biggest supporters. I don't have a large crew since I'm the only investor. People that share your long-term objectives and vision are the ones you want to have on your side... Inherently, NFTs are a social phenomenon."

Authenticity certifications for digital valuables are known as non-fungible tokens or NFTs.

In order to combat frauds, duplication, and fakes, Coinbase relies on its users and the community to report any suspicious NFTs. Initially, Coinbase will not charge any transaction fees for NFT purchases, but it will progressively begin collecting a low-single-digit cost over time. In addition to cryptocurrencies, NFTs may be purchased using a credit card. Initially, the marketplace will only be available to a small group of invited participants before being made available to the entire public.

According to early feedback, Coinbase intends to extend its marketplace in the coming weeks to include more individuals and countries. Additionally, over the coming several weeks and months, Coinbase will collaborate with artists to release limited-edition NFTs on the Coinbase platform. If an NFT creator has a Coinbase account, they will be able to receive their royalties every time one of their NFTs is sold.

By using the "discover" button and searching by price or collection name, collectors may discover new artists based on their preferences. On top of that, Coinbase will provide suggestions for people to follow on Twitter. Markets are an essential source of diversification away from crypto trading, which is now its primary source of income, and they will be an important component in what we perceive as a growing, diversified digital asset platform," the company said in an email.

NFTs Are On The Rise

According to a forecast by Nonfungible.com and L'Atelier, a BNP Paribas-owned research group, sales of NFTs soared 21,000 percent in 2021 to more than $17.6 billion. To put it another way, a blockchain or digital ledger may be regarded as an NFT's record of unique digital assets, such as paintings, video games, or other creative works. However, despite the fact that the market has been accused of being in a bubble, the analysis reveals that it is in fact a buyers' market. Demand climbed by about 2,962 percent, while supply expanded by 3,669 percent, in the last year. The digital artist Beeple's token portraying a collage sold for a record-breaking $69 million at Christie's last year. Collections accounted for $8.4 billion in NFT sales, making it the most popular NFT product group by far.

Bored Ape Yacht Club, an Ethereum blockchain collection of 10,000 digital goods, has also seen a surge in popularity, with a sales volume of $32.2 million in only seven days. NFTs for gaming, such as Axie Infinity, came in second with sales of $5.2 billion. As CEO and co-founder of NonFungible.com Dan Kelly claims the NFT market was not a bubble.

"It was an amazing year in 2021. But we predicted that by 2021 all communities will have a digital identity of their own. It's critical that we develop a new Web3 sector with strong ideals borne by strong communities.”

NFTs were maintained for an average of 48 days before being sold in 2021, compared to 156 days in the previous year, according to the research.

The Future Of NFTs

In 2021, NFTs grabbed the globe by storm, ushering in a new era of digital art while also becoming one of the year's most rapidly expanding asset classes. Non-fungible tokens have made it possible for artists to sell digital originals directly to consumers while still earning royalties on subsequent sales. In fact, this is only the beginning of what non-fungible tokens may do in the web 3.0 future. Non-fungible tokens as "membership cards" to a digital community were one of the first NFT use cases to emerge.

With this notion in mind, collections of profile image NFTs like Oni Ronin have grown, enabling access to workshops, free NFTs, and prize raffles for the Oni Ronin NFT holders.

NFTs are well suited for solving major problems in the field of event tickets, such as forging and digital theft, since they give irreversible evidence of ownership on the blockchain. NFTs have had a significant impact on the gaming industry by allowing gamers to own in-game assets that they buy. As time goes NFTs are going to become more popular and be embraced by several industries.

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