Coinbase Global is joining the NFT bandwagon by launching its own marketplace by the end of the year.
The largest cryptocurrency exchange in the US on Tuesday said Coinbase NFT, its peer-to-peer marketplace, will allow users to mint, purchase, showcase, and discover NFTs.
The initial launch will support ethereum-based ERC-721 and ERC-1155 standards with plans to roll out multichain support later.
The company said it wants creating an NFT, or a non-fungible token, to be as simple as tapping a few buttons. “Anything more complicated is a barrier to creativity,” it said in its statement.
To personalize the experience, Coinbase said users can create their personal feeds to help them connect with like-minded artists. The exchange is opening up the waitlist for early access to Coinbase NFT on Tuesday.
The announcement of Coinbase comes as other cryptocurrency exchanges have thrown their hats in the NFT ring.
Sam Bankman-Fried’s FTX on Monday announced the launch of FTX NFTs, its NFT marketplace that will allow users to mint, hold, authenticate, and trade digital collectibles on the solana blockchain. FTX said it also has plans to roll out support for ethereum-based tokens.
NFTs – digital representations of artwork, sports cards, or other collectibles tied to a blockchain – have surged in popularity this year.
For the third quarter, NFT trading volume exploded, fueled by popular blockchain-based games, according to a report by industry analyst firm DappRadar. NFTs registered $10.7 billion in trading volume, a 704% increase from the previous quarter when the tally was under $2 billion.
When people buy NFTs, they gain the rights to the unique token on the blockchain, not the artworks themselves. But the fact that the information on a blockchain is next to impossible to alter makes NFTs appealing, especially to collectors and artists.
While NFTs have not received intense scrutiny as cryptocurrency trading has, US regulators may clamp down on the space soon. The industry’s rapid growth has already attracted some nefarious acts.
Mark Cuban-backed OpenSea, the largest NFT marketplace, for instance, has found evidence of insider trading on its platform in September, the company confirmed in a statement.