Coinbase is launching a marketplace for non-fungible tokens (NFTs).

  • Coinbase has started a queue for a nonfungible token marketplace that allows users to create, collect, and exchange tokens.
  • This year, the NFT industry has surged, with third-quarter revenues exceeding $10 billion, according to DappRadar.
  • Coinbase might use the move to diversify its revenue streams, as it presently relies heavily on exchange fees.
The cryptocurrency exchange announced on Tuesday that it will establish a marketplace that will allow users to generate, collect, and trade nonfungible tokens (NFTs). Users can join a waitlist to get early access to the feature, according to the business.

NFTs are one-of-a-kind digital assets used to indicate ownership of online items such as collectible trading cards or rare paintings. They're not fungible, which means you can't exchange one NFT for another like bitcoin or other cryptocurrencies.

The sale of such tokens has increased dramatically this year. The NFT industry surpassed $10 billion in transaction volume in the third quarter of 2021, according to DappRadar, a startup that collects data on crypto-based applications.

The nearly $70 million spent for a digital collage by Mike Winkelmann, the artist known as Beeple, and the roughly $3 million paid for the first-ever tweet are examples of notable transactions.

Coinbase NFT, the firm's NFT marketplace, would contain "social features" and tap into the "creative economy," a term that describes the world of people who make money online by posting videos and other  content online.

NFTs, according to proponents, are a way to appropriately compensate artists whose revenue has decreased as a result of the broad availability of material online. Critics, on the other hand, regard them as just another speculative bubble in the cryptocurrency market waiting to burst.

Coinbase's move into the NFT space, however, could be a means for the company to diversify its revenue streams, given it is currently reliant on exchange fees. It would also pit the firm against other crypto start-ups such as Gemini, Binance, and OpenSea, which is backed by Andreessen Horowitz, an early Coinbase investor.

Earlier this month, OpenSea admitted insider trading took place on its platform. The company is by far the biggest non-fungible tokens (NFTs) marketplace, according to DappRadar.

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