Is Coinbase's New NFT Marketplace the Answer to Its Growth Problems?

tech.hindustantimes.com:

Coinbase Global Inc.’s marketplace for nonfungible tokens is finally here in what could be key to reviving the crypto exchange’s growth prospects a year after its fizzling public debut. 

A trial version of its long-awaited platform -- designed to sell ownership of digital art and possibly other items -- was unveiled Wednesday in the company’s latest attempt to diversify its revenue and bring more predictability to the business.

When Coinbase went public a year ago, investors had high hopes for a growth story. But with sales growth expected to go from triple digits in 2021 to negative this year, shares have tanked to a record low recently. 

The social NFT marketplace -- which will allow users to trade, “like” and comment on images, similar to Instagram -- will be entering a crowded field six months after it was originally announced. A slew of other crypto exchanges and platforms, such as Binance and FTX, have already launched similar marketplaces. Plus, the NFT hype itself is cooling down. Sales on OpenSea, the world’s biggest NFT marketplace, are down 67% over the past 30 days, per tracker DappRadar.

Coinbase will need the platform to be a hit as it seeks to reduce its reliance on trading fees, which are subject to the whims of retail traders who more recently have been on the sidelines after crypto prices fell from last year’s highs. At the end of last year, about 86% of Coinbase’s revenue came from trading fees. It has about 89 million registered users to whom it could promote the service.

Many believe Coinbase will be able to expand into NFTs -- but perhaps not as quickly as they expected last fall. The platform may be “too little, too late,” according to Dan Dolev, managing director at Mizuho Securities. “I don’t think