Launched this week, the NFT marketplace from the largest crypto exchange in the US, Coinbase, did not meet the high expectations of the crypto community and had no effect on the downward trend of the company’s shares.
Coinbase, one of the most well-known cryptocurrency trading platforms, just launched its NFT trading platform. Unfortunately, based on the poor trade volumes, it does not appear that the NFT marketplace’s launch was a success.
Despite the popularity of the Coinbase exchange among traders and the crypto community in general, the launch of the NFT marketplace did not show good results in the first days of activity. Over the past week, the marketplace has processed only 900 transactions.
Considering that there were more than 8 million participants on the waitlist, all of whom were supposed to have access to the platform’s beta version, the trading volume for the first week was only 73 ETH.
Since its April 20 launch, Coinbase’s marketplace has handled less than 900 total transactions, according to statistics from crypto analytics site Dune. In that time, the marketplace has seen a total trade volume of 73 ETH (approximately $217,000), with over 650 people trading on the site.
Some consider this result as evidence of the competitive market’s refusal to accept a new marketplace, while other users perceive the flaw in the strategy of releasing the platform as the primary cause for the “failure.”
However, it is important to note that judging a product’s true success by its beta, and much more so by a closed beta launch, is extremely difficult. Such releases are designed to put the team’s work to the test and identify flaws in the system.
On the other hand, a well-known NFT marketplace OpenSea handled approximately $808 million in Ethereum-based trading activity among over 36,000 customers during the same time period.
Looking at the facts of Coinbase’s beta launch, most stakeholders believe that the underwhelming use statistics may be linked to the firm only providing a small number of users access to the test program.
Media outlets have requested responses from Coinbase following the situation surrounding the beta launch of its NFT marketplace platform. However, Coinbase did not reveal any asked information since the business would be unable to authenticate any user data on its marketplace because the product is still in its testing phase.
Coinbase previously explained that its social-focused marketplace is still in its early stages of development, that the company intends to grow the platform’s user base, and that exclusive partnerships are an important strategy for growing the platform’s user base. These collaborations are set to be unveiled in the coming months.
The shares of the exchange, which was the first among competitors to enter the IPO, dropped to a new depth amid the debut of the NFT marketplace, which did not meet expectations.