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Finally, the crypto trading platform Coinbase’s NFT push came this week to the market.
The long-awaited entry of the US-based cryptocurrency exchange giant into the non fungible tokens market has been coming, and its timing will be crucial for the public company. Since the shares of the crypto trading company are trading around their all-time lows that are ahead of its warning and will land in early May. Coinbase has turned out to be a proven example of an entity that could by helping both individuals and institutions buy, sell, and stake crypto and build a huge and profitable business.
As a matter of fact, when we observe the company’s net revenue is about $2.49 billion and while comparing an early version of the number against the current market valuation of Coinbase of about $36.3 billion. It’s clearly visible that the company’s trading is less than four times its revenue.
The effort of Coinbase towards NFTs came at once its entry into the market that is already obliged by the popular and valuable OpenSea NFT platform, and it has shot at a new growth vein to tap. This growth could get Coinbase helping to move its valuation and result in multiples closer to the range that the firm enjoyed while private.
However, the Coinbase NFT push data is too trivial at this time. As it won’t be an element of surprise really as the services are new from the unicorn is also new. Rather than trying to analyze what seems to be the small scatter amount from services of their party analytics.
These situations raise several questions and doubt how Coinbase could take the leverage from the NFTs push. For the next few weeks, there will be curious about how much volume will be there in terms of total trades and the trade value driven by the NFT marketplace of Coinbase.
The company, for now, has a huge waiting list, and it has simply a significant and massive user base to slide into the new product. Here the critical question is how the waitlist would convert into active users and regular activities. After the waitlist is covered, the part of Coinbase, which heads over the new NFT product, will help determine the company’s growing volume in the short term and ultimately in the long term.
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With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
