Coinbase Doubles Down on NFT Marketplace Despite Losses

• Coinbase has received inquiries from investors and analysts regarding the company’s NFT marketplace.
• The platform has witnessed low volume over the past week compared to other NFT marketplaces.
• Despite this, Coinbase President and COO Emilie Choi insists that the firm is still invested in the project.

Coinbase Not Giving Up on NFT Marketplace

Coinbase, a cryptocurrency exchange, has indicated that it will not be giving up on its Non-Fungible Token (NFT) platform any time soon in spite of low volumes over time and increased investor scrutiny. During an earnings call with shareholders, questions were asked about losses related to its NFT marketplace as well as future plans for expansion.

Answering Questions from Shareholders

On an earnings call with investors and analysts after reporting higher-than-expected sales but a loss of $577 million for its final fiscal quarter of last year, Coinbase received a number of inquiries regarding their NFT endeavor which was launched last spring. Shareholders asked how much money the company had lost due to running the platform as well as ways to „minimize the burn“.

Low Volume Compared to Other Marketplaces

According to data provided by Dune Analytics, Coinbase’s NFT marketplace has only seen 41 sales and less than 3 Ethereum in volume within the past week totaling around $4,900 – far below other marketplaces such as OpenSea or Blur which have seen 303,000 and 53,000 purchases respectively in that same period.

Coinbase Still Invested in Initiative

When questioned about these figures during the investor call conference and whether or not this would lead them to give up on their NFT project entirely, Coinbase President & COO Emilie Choi answered that they still see potential for growth despite having a small team currently working on it. She also mentioned that no projects have been abandoned yet and that their focus remains on finding ways to maximize impact areas within the initiative.

Second Round of Layoffs

After cutting its workforce by 1,100 people in June 2020, Coinbase announced another 950 layoffs last month though they declined to say how many were specifically related to their NFT venture.