The launch of Coinbase NFT marketplace last year created a buzz in the industry with many expecting it to bring NFTs to the mainstream and attract new users to the world of digital ownership. However, the project failed to deliver on its promise and did not gain the traction required to compete with established players like OpenSea.
Due to a previous announcement made by artist Jessica Yatrofsky about the cancellation of her “XX Gen” drop on the Coinbase NFT marketplace and her private information that the marketplace would be shutting down as of February 2023, Coinbase was forced to issue a statement. This statement from Coinbase, a well-known player in the US crypto industry, comes amid the company’s struggles in the past year, including the lackluster performance of its NFT marketplace, which had a lackluster launch and generated fewer than 1,000 transactions in its first week in April. In addition, Coinbase recently faced issues with Apple regarding the sending of NFTs through the Coinbase Wallet iOS platform. The initial launch of Coinbase NFTs was expected to drive major adoption due to the company’s prominence in the crypto industry, but today’s news seems to indicate the opposite.
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 NFT (@Coinbase_NFT) February 1, 2023
The lackluster performance of Coinbase NFT marketplace highlights the fact that despite the growing popularity of crypto, the number of people willing to invest in NFTs remains limited. The platform’s lack of a clear plan and strategy was one of the main reasons for its underwhelming performance. The news serves as a reminder that while crypto adoption is on the rise, the NFT market is still in its early stages and much work is needed to make it more accessible and attractive to the mainstream.