Coinbase Global is jumping on the NFT trend, announcing the establishment of its own marketplace by the end of the year.
On Tuesday, Coinbase NFT, the largest cryptocurrency exchange in the United States, announced that users will be able to mint, purchase, showcase, and discover NFTs through its peer-to-peer marketplace.
The initial launch will support the ethereum-based ERC-721 and ERC-1155 standards, with multichain functionality coming later.
According to the business, producing an NFT, or non-fungible token, should be as straightforward as pressing a few buttons. “Anything more complicated is a hindrance to innovation,” the organisation stated in a statement.
Coinbase stated that customers can establish personal feeds to enable them to interact with like-minded musicians in order to tailor their experience. On Tuesday, the exchange will open the waitlist for early access to Coinbase NFT.
Coinbase’s announcement comes as other cryptocurrency exchanges have thrown their hats into the NFT ring.
On Monday, Sam Bankman-FTX Fried’s announced the debut of FTX NFTs, an NFT marketplace that would enable users to create, keep, authenticate, and trade digital items on the Solana blockchain. FTX has stated that it intends to provide support for ethereum-based coins.
This year has seen a boom in the popularity of NFTs, which are digital replicas of artwork, sports cards, or other collectibles linked to a blockchain.
According to a research by industry analyst firm DappRadar, NFT trade volume skyrocketed in the third quarter, propelled by popular blockchain-based games. The trading volume of NFTs was $10.7 billion, a 704 percent rise from the previous quarter’s total of less than $2 billion.
When individuals purchase NFTs, they are purchasing the rights to the unique token on the blockchain rather than the artworks itself. However, the fact that information on a blockchain is nearly impossible to change makes NFTs intriguing, particularly to collectors and artists.
While NFTs have not faced the same level of attention as bitcoin trading, US regulators may soon tighten their grip on the sector. Because of the industry’s quick growth, some unscrupulous deeds have already occurred.