Coinbase Flouts Possibility Its NFT Business Could Be 'Bigger' Than Current Crypto Offerings Like Bitcoin And Dogecoin

Coinbase Global Inc COIN CEO Brian Armstrong said Tuesday that there is a likelihood that the company’s non fungible token segment could grow as big or even bigger than fungible tokens.

What Happened: Armstrong said at the company’s third-quarter earnings call that there is a possibility the trading platform’s recently announced NFT trading platform, Coinbase NFT, turns out to be as big or bigger than its currently dominant platforms that allow consumers access to coins such as Bitcoin BTC/USD and Dogecoin DOGE/USD

“We're very excited about NFT. I think, this is going to be a very large area for crypto in the future, and it already is today,” said Armstrong.

“Traditionally our Coinbase is focused on FTs fungible tokens. And we're equally excited about NFT, I think it could be as big or bigger we don't know.”

Why It Matters: Armstrong said that Coinbase NFT will be launching in the “next quarter or two.”

The CEO said that Coinbase would like to make Coinbase NFT “more like Instagram as opposed to say an auction like eBay.”

Armstrong stressed the need for interoperability with other platforms along with ease of use.

Coinbase NFT, a potential rival to the already entrenched OpenSea marketplace, was announced in October. At the time the company said it would like to help millions of people access the digital art tokens in the same way it helped them access Bitcoin.

Late last month, the company’s NFT platform waitlist grew to over 2 million people.

On Tuesday, Coinbase reported Q3 revenue of $1.24 billion, which missed the Street estimate of $1.57 billion. The third-quarter trading volume was $327 billion, which is lower than the $462 billion seen in the previous quarter.

The all-time number of NFTs sold stands at 10.8 million, as per data from NonFungiblev. These assets have raked in an eye-popping $10.08 billion. The all-time average price of an NFT stands at $927.59.

This year, 5.8 million NFTs have been sold, worth $9.4 billion, as per NonFungible. This means 2021 accounts for a little over half of all NFTs sold so far. In terms of the sales amount, 2021 has the lion's share at 93.25%.

Price Action: On Tuesday, Coinbase shares fell 13.24% in the after-hours to $310.06 after ending the regular session nearly 1% higher at $357.39.

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Posted In: CryptocurrencyNewsGuidanceMarketsBitcoindogecoinNFTNFTsNon fungible token