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In a matter of 24 hours, Coinbase’s NFT marketplace has garnered an extremely positive response. “We are getting a LOT of signups – so grateful for all your interest,” Coinbase vice president of product Sanchan Saxena wrote on Twitter.
“We are seeing insane loads on our servers and our team is working hard to get this resolved.”
The yet-to-be-launched marketplace for NFTs saw more than one million sign-ups on its waitlist on the very first day it opened, reported Bloomberg citing a person familiar with the situation. In August, Coinbase had said that its customer usage had slowed at the start of the third quarter due to the crypto prices going down and that in response, it is seeking to diversify its revenue. NFT marketplace is the move in that direction. “Fees are more likely to mirror retail than institutional crypto-trading commissions,” wrote Bloomberg Intelligence’s senior fintech analyst Julie Chariell in a report.
“NFT trading at our 3% fee estimate would bring much more revenue per trading dollar, along with less volatility to Coinbase operations than the crypto trading platform.”
While some of the signups could be duplicates and spam, it is extremely clear that Coinbase’s NFT extension has become a hot topic already. These numbers will beat the popular marketplace OpenSea very easily. OpenSea’s total traders' overtime on Ethereum, those registered users who have made at least one transaction, are currently at 535,345 while monthly active traders made a 281,400 high in September, according to Dune Analytics. In the first half of 2021, Opensea had increased its market share from just 35% to a whopping 95%. Of the $2.8 billion spent on NFT marketplaces last month, the majority of it, $2.72 billion, changed hands on OpenSea. But now, this dominance is being threatened by other entrants. After the leading crypto exchanges Binance and FTX jumped in this week, Coinbase also entered this race to lead the NFT marketplace space. With its 68 million users, Coinbase can further expand the NFTs audience by making it “more accessible,” effortless, and putting the complexity behind the scenes. In other news, OpenSea said it recently patched security flaws that would have allowed bad actors to loot its users’ digital crypto wallets. The issue was first brought to the attention by the researchers of Israel-based cybersecurity company Check Point, which noted that the attacker used “malicious” NFTs to lure users in. “Security is fundamental to OpenSea….we investigated the matter and implemented a fix within an hour of it being brought to our attention,” said the company in a statement.