Coinbase Global Inc. (NASDAQ: COIN), a cryptocurrency exchange, recently announced its own NFT token service. It sparked a lot of interest, but the outcomes were far less than projected, which highlights the oddity of new product “hype.”
Coinbase Global Inc. (COIN) has stated that the NFT service would be available on its platform on May 4, 2022. The idea seemed promising at first, with more than 2.1 million users signing up for the new Coinbase NFT platform’s waiting list. However, just 4132 transactions were made on the site in the first 19 days after its opening, indicating that only 0.0019 percent of the waiting list purchased or sold NFTs on the Coinbase Site.
At the same time, the average daily sales were less than $50,000, which is a little sum when compared to the top NFT platforms. For example, purchases on the OpenSea platform set a daily record of $161 million during the peak of interest in the NFT issue in January 2022.
Coinbase’s ambition to swiftly gain a major part of the NFT market has thus far proven unsuccessful. The largest cryptocurrency exchange in the United States is COIN. In reality, this is the first firm to successfully navigate regulatory hurdles and join the public market as a significant service provider for virtual “currency.”
In hot (hype) issues like cryptocurrencies, NFTs, and metaverses, time to market is crucial. The early players acquire the majority of paying customers, gain greatly from the first surge of interest in a new issue and have greater potential to build long-term income flow.
Despite its massive user base, Coinbase Global Inc. (COIN) has struggled to match the transaction volume of the OpenSea platform, which launched the first open NFT market in 2017. Until now, the OpenSea platform has held top place in terms of monthly sales (near to $3 billion), despite the fact that its audience is just 500 thousand, far less than Coinbase’s network of bitcoin users.
Coinbase Global Inc. (COIN)’s main business is unlikely to suffer much from a less successful NFT launch than envisaged. This example, however, highlights an essential aspect of investing in new sectors that are hotly debated on social media.