Coinbase NFT launched to the public on May 4 after two weeks in private beta. Right away skeptics voiced concerns the platform’s embrace of social media functionality might backfire.
Coinbase built a platform that’s part OpenSea and part Instagram. Coinbase NFT’s users can follow each other and comment on their favorite NFTs. It features a discovery feed and trending collections.
“Coinbase didn’t launch an NFT platform, they launched a web3 Instagram,” said Jason Yanowitz, the co-founder of Blockworks, on Twitter.
Many users have faith that the platform has the potential to introduce countless new users into NFTs, because of Coinbase’s global brand and the ability to buy NFTs with credit cards on the platform. However after its first two weeks in beta, Coinbase NFT’s results were modest. Prior to today’s launch, there were only 1,246 transactions and 153 ETH traded.
“I don’t think they’ll be taking away any market share away from existing platforms,” NFT collector @chief_leek told The Defiant. “People who are used to OpenSea will likely stick to OpenSea.”
John Crain, founder of NFT marketplace SuperRare, had concerns regarding Coinbase NFT. It seems like Coinbase NFT “wasn’t really thought through” and was “designed by committee”, he told The Defiant.
Crain verbalised that if Coinbase’s mission is to assist people to get access to new asset classes like NFTs, then “just allowing people to buy NFTs via their already developed onramps and storing them in easy to use custody solutions would have made more sense.”
The addition of a social media piece to its platform will differentiate Coinbase from Open Sea and its competition. It could be what NFT shoppers want. The move could also open Pandora’s Box and flood the site with hate speech and bullying, as well as spamming. If that happens, potential NFT collectors may be turned away.