- An artist on Twitter said that she would not drop her new NFT collection on Coinbase (NASDAQ:COIN) NFT because the marketplace is planning to shut down in February.
- Coinbase NFT responded by saying that it’s not shutting down but is only “pausing artist drops” to “focus on other features and tools that creators have asked for.”
- The marketplace remains “optimistic about its future as we continue building.”
- Coinbase has seen dwindling volumes in its marketplace. Its seven-day volume is just $1,660, compared to OpenSea’s 24-hour volume on Ethereum of over $13 million.
Coinbase, the world’s second-largest centralized crypto exchange, has addressed the rumors of its NFT marketplace’s alleged imminent shutdown.
Coinbase NFT said on Twitter that it’s not shutting down its NFT marketplace but rather “pausing artist drops” to “focus on other features and tools that creators have asked for.”
“Rest assured, our mission for Coinbase NFT hasn’t changed and we remain optimistic about our future as we continue building. We’re excited to find more opportunities to work with creators in the future,” they said.
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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. To be clear: We are not shutting down the Coinbase NFT marketplace.Coinbase’s clarification comes after artist Jessica Yatrofsky announced on Twitter that her new NFT collection isn’t going to be released on the Coinbase NFT marketplace because it’s planning to shut it down sometime in February.— Coinbase NFT (@Coinbase_NFT) February 1, 2023
While Coinbase NFT continues to operate, it would come as no surprise if the marketplace did shut down, considering the volumes on the marketplace have been tiny compared to other NFT marketplaces.
Coinbase NFT Sees Tiny Volumes
Coinbase NFT has been struggling to gain traction since the marketplace launch almost a year ago. The marketplace has done $7.3 million in volume in its nine months of existence.
But recent numbers are even lower. For example, Coinbase NFT’s seven-day volume is just $1,660, and its 24-hour volume is $109. For comparison, OpenSea, the largest NFT marketplace and one of Coinbase’s rivals, saw over $13 million in total volume traded in Ethereum yesterday alone.
Coinbase’s struggles to attract users correlate to its chief product officer Surojit Chatterjee’s exit from the company. Chatterjee, hired by Coinbase from Google (NASDAQ:GOOGL) for a huge $646 million compensation package, left the company just six months after the launch of the NFT marketplace.
Since Chatterjee’s exit, Coinbase NFT has seen little to no user volume and interest.
On the Flipside
- It’s unclear why Coinbase NFT needs to halt new projects to develop tools.
- As NFT volumes seem to be slowly returning, Coinbase might see more marketplace activity.
- Coinbase NFT is still in beta.
Why You Should Care
Coinbase NFT was labeled as the next thing when it initially launched. However, it has yet to live up to its hype. This shows how hard it is to outcompete OpenSea, even with the resources Coinbase has.
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