Will Coinbase’s NFT Marketplace Democratize NFTs for Good?
Coinbase’s NFT marketplace is expected to launch by the end of the year and has a waitlist in place for users to be invited. The waitlist is currently open to people above 18 who are residents of the USA. So, what is the Coinbase NFT marketplace? How will it affect the NFT space when it is released? We will answer all these questions in this article.
What Is An NFT and Why Is It Relevant?
NFTs stands for non-fungible tokens. These usually refer to media items such as images, songs, GIFs, drawings or animations that are unique. Cryptocurrency, on the other hand, is fungible. In other words, every Bitcoin or Ethereum unit is the same and can be exchanged for the same value. But the same cannot be said for NFTs.
There are two main perspectives when looking at NFTs. Those in favor say that they are the future for artists being compensated for their work. Whereas those who are critical of NFTs say that the space is a bubble waiting to burst just like crypto.
The current numbers clearly show the dominance of NFTs in the market.
According to DappRadar, a company that tracks stats on cryptocurrency-based sites, the NFT market has had over $10 billion in sales this year.
What is the Coinbase NFT Marketplace?
The Coinbase NFT marketplace will aim to make it easier for people to mint, purchase and find NFTs than ever before. They are planning to introduce the world to NFTs in an organized manner, just as they did for Bitcoin.
The company aims to provide artists with creative freedom, by providing them with decentralized contracts and transparent metadata.
They also plan to gradually develop a community for people to learn about the NFT marketplace based on their interests. This will help people connect with others that share similar interests.
Lastly, they want to ensure that artists have more economic freedom and are able to contribute more to the ‘real economy.’
How Will The Coinbase NFT Marketplace Affect the Current NFT Market?
Coinbase is attempting to clear up the confusion and uncertainty when it comes to the NFT niche. The marketplace will be much more interactive than current e-commerce sites such as Amazon or eBay. It will be a lot more like shopping on a social media app such as Instagram.
Opensea is currently the reigning champion of the NFT trading niche. The arrival of another popular name like Coinbase will surely spark competition in the market. We can also expect more people to become aware of what NFTs are and start using the marketplace to trade online.
It will also give consumers the option to choose an alternative. This will result in companies like Opensea having a reduced monopoly over NFT trading.
The market for NFT trading is expected to outgrow cryptocurrency, according to the founder of Coinbase, Brian Armstrong, and once his creation is released in a few months, we can expect to see a shift in the way the NFT market works for the better.