Can Bill Murray save Coinbase NFT?
Jthere hasn’t been a lot of good news for Coinbase (NASDAQ: CURRENCY) non-fungible token platform, Coinbase NFT, lately. Non-fungible tokens (NFT) are digital assets on a blockchain that are often represented by images; examples include the Bored Ape Yacht Club or CryptoPunks. According to Dune Analytics, Coinbase, a leading crypto exchange, has only sold $2.95 million worth of NFTs on its platform since its launch on April 20. That’s a pittance compared to the $6 billion traded on OpenSea, the industry’s premier NFT marketplace.
To make matters worse, NFT transaction volume is down about 75% in dollars for NFTs on the Ethereum blockchain since mid-April. If NFTs are in decline and Coinbase can’t take any, what would you do? How about calling on actor Bill Murray and the culture and image site theCHIVE?
Bill Murray’s Coinbase NFT
Today, Bill Murray will post or deposit 1,000 NFTs in a collection created with theCHIVE and brand agency Project Venkman. There are 100 NFTs of stories, each with 10 color changes of each image that make up the collection. The drop will be auctioned off with an actual painting and pledges”once in a lifetime experiences with man, myth, legend.”
The NFT drop is one of four to come, including one related to NBA star Damian Lillard, a feature by graphic designer Jeff Staple, and a “Historical Figures” collection that includes Athena, Queen Victoria and others.
Generally, the idea is to bring celebrity exposure to Coinbase NFT. But the challenge is that NFT buyers today are probably already used to trading on one of the existing platforms, so moving from a marketplace like OpenSea to Coinbase NFT isn’t that appealing.
The NFT problem
Maybe it was just bad timing, but Coinbase NFT launched at a time when NFT sales were dropping like a rock. You can see below that OpenSea volume is down about 75% from mid-May and Coinbase NFT hasn’t been able to capture more than 1% of trading volume for over 100 years. a day or two.
Is it a matter of Coinbase entering a declining market and having no luck attracting existing users? Wouldn’t Coinbase NFT have done better if the overall NFT market was growing?
It’s impossible to know what caused Coinbase NFT’s poor launch, but it’s safe to say that it’s not gaining market share today. Could celebrities change that? I’m not so sure.
An eye on the future?
I have to wonder if NFT drops like this foreshadow what’s to come for Coinbase NFT. We know from Coinbase’s Q1 2022 conference call that the company has bigger plans. He said there is “features we plan to add, the ability for people to make NFT drops, create their own NFT tokens, there are token gated communities we want to support, and even the ability to buy a coin directly with your credit card or whatever funds you currently have in your main Coinbase account.”
The market now shows more NFTs with prices in US dollars, even if a purchase must be made in Ethereum. This drop would also test the bidding features. We could see a highly publicized test of coinage tools, or tools that create NFTs on the blockchain, coming to market.
Coinbase and the NFT long game
I don’t think Coinbase’s long game is just competitive with OpenSea. Its growth potential lies in making it easier to create, buy, and own NFTs, which is where integration with the Coinbase App, Coinbase Wallet, and Coinbase Pay could make it easier to onboard the next generation of users. .
It’s a very long game that Coinbase NFT is playing, but it has to both prove that its tools (minting and bidding) work and attract buyers to the platform. Bill Murray is a name that could do both, but it’s an uphill battle against the well-established OpenSea company.
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