Daily Column – 12th October 2021

Yes, we’re still talking about NFTs, and Coinbase is opening a marketplace for the tokenized assets.

Users will be able to purchase, sell, and mint NFTs on the marketplace, which will be known as Coinbase NFT. NFTs are digital tokens that prove you are the rightful owner of a digital asset. Coinbase also stated that it would incorporate “social aspects” and positioned the platform as being more consumer friendly than other platforms.

There are two competing cryptocurrency exchanges among the “other guys”: Binance and FTX, both of whom have just started their respective NFT marketplaces. However, they are all pipsqueaks in comparison to OpenSea, which has a 97 percent share of the NFT market and is the market leader. According to DappRadar, OpenSea has handled approximately $2.8 billion worth of NFT transactions in only the last month.

What do businesses see in non-financial technologies?

Last spring, Beeple, a digital artist sold an NFT for a whopping $69 Million at Christie’s, demonstrating that NFTs have survived and even expanded past their “fidget spinning” era. Google searches were suspended for several months after that, but interest has since re-emerged…perhaps best demonstrated by the sale of an NFT of a rock for more than half a million dollars at the end of August.

Furthermore, it is not only your buddy who believes that NFTs have a promising future.

By investing in a CryptoPunk, a unique digital avatar, for the sum of $150,000 worth of ETH this summer, Visa established itself as an early player in the new financial technology (NFT) market.
NFTs, according to Facebook CEO Mark Zuckerberg, have the potential to be a ubiquitous aspect of the metaverse he is working to create.
Skeptics claim that the NFT market is riddled with scams and frauds and is essentially a bubble growing and surviving on hype and is about to explode at any moment.

Why did Coinbase invest in NFT? 

Coinbase NFT is the company’s second attempt in roughly a month to establish a new revenue stream, following the SEC’s decision to revoke its last launch, a crypto lending product called Lend, which was cancelled. Their stock has dropped 27% since going public in April.

Looking ahead…anyone can sign up for Coinbase’s NFT marketplace, which the company hopes to launch later this year, by visiting their website.

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