{"id":377142,"date":"2023-02-22T20:16:47","date_gmt":"2023-02-23T01:16:47","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=377142"},"modified":"2023-03-02T04:06:43","modified_gmt":"2023-03-02T09:06:43","slug":"coinbase-is-not-giving-up-on-nft-marketplace","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/coinbase-is-not-giving-up-on-nft-marketplace","title":{"rendered":"Coinbase is not Giving Up on NFT Marketplace"},"content":{"rendered":"

Yesterday, cryptocurrency exchange Coinbase gave a signal that it will not be giving up on its NFT project<\/a> any time soon. This is true notwithstanding a sharp decline in volume over time and increased shareholder scrutiny.<\/p>\n

Coinbase received a number of inquiries regarding the firm’s health on an earnings call with investors and analysts after the company reported higher-than-expected sales and a loss of $577 million for its final fiscal quarter of last year.<\/p>\n

Shareholders asked a query on the exchange’s NFT endeavor, a platform that was introduced last spring. It requested information from Coinbase on how much money the company has lost as a result of its NFT marketplace as well as how it intends to “minimize the burn” that comes with running the platform.<\/p>\n

The stakeholder also pondered the future of the industry and ways in which Coinbase<\/a> may expand its market share. According to a Dune Analytics dashboard, Coinbase NFT has only witnessed 41 sales and less than 3 Ethereum in volume over the past week, totaling about $4,900.<\/p>\n

In comparison to other NFT marketplaces like OpenSea and Blur, which have witnessed about 303,000 and 53,000 purchases within the past week, respectively, it is essentially a ghost town.<\/p>\n

An invaluable initative<\/h2>\n

Coinbase President and COO Emilie Choi stated that the business still sees Coinbase NFT as a valuable initiative without providing any project-specific losses. We continue to see potential here for the medium and long terms, she added.<\/p>\n

Choi did, however, seem to imply that Coinbase is currently investing less in the initiative than in the past. We currently have a very small crew working on it, but she insisted that nothing had been abandoned.<\/p>\n

After cutting its workforce by 1,100 people in June of last year, Coinbase announced last month that it was letting go of 950 workers. This is the exchange’s second round of layoffs in the past year. About the number of layoffs related to Coinbase NFT<\/a>, the business declined to say.<\/p>\n

According to a Coinbase representative:<\/p>\n

The Coinbase NFT team has reorganized its resources to focus on the highest impact areas for our users. Inside Coinbase NFT, we’re bringing increased concentration and efficiency to a narrower collection of high-impact emphasis areas.<\/p><\/blockquote>\n

NFTs, or non-fake tokens, are used to demonstrate ownership of an asset, frequently digital art. Yet the NFT trading ecosystem has lately changed as Blur and OpenSea compete for top rank, forcing OpenSea to cut creator royalties recently as Blur’s volume increased.<\/p>\n

Coinbase NFT has been scaling back some aspects of its operations in the meantime. According to a recent Tweet, the company declared it was “pausing” further NFT releases with creators in order to “concentrate on other products and tools that creators have requested.”<\/p>\n

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We recently shared that we are pausing creator Drops on the NFT marketplace to focus on other features and tools that creators have asked for. <\/p>\n

To be clear: We are not shutting down the Coinbase NFT marketplace.<\/p>\n

— Coinbase NFT 🛡️ (@Coinbase_NFT) February 1, 2023<\/a><\/p><\/blockquote>\n