The first day of Coinbase NFT Marketplace didn’t go so well. The cryptocurrency exchange’s newly launched NFT marketplace gained less than 200 new users when it opened its platform to the public.
Coinbase NFT Marketplace Attracts Few Users
After letting in exclusive individuals from its waiting list in the past few weeks, the U.S.’s biggest crypto exchange opened its NFT marketplace on May 4. According to data from Dune Analytics, the marketplace saw just 150 users when it opened its beta public. The added users brought to a total of 1,112 users on Coinbase NFT as of Wednesday evening. As of writing, the marketplace has 1,233 total users.
Additionally, the platform also only saw 150 transactions on its first day open to the public. Dune said these amounted to around $75,000 worth of ETH which is less than one floor Bored Ape’s price.
Why the Coinbase NFT Marketplace Had A Slow Start
There are four possible reasons why NFT collectors didn’t rush to sign up and trade on Coinbase NFT. For instance, there’s already lots of competition. There’s Opensea, the first and largest NFT marketplace. There are also SuperRare, LooksRare, Foundation, Rarible, and NiftyGateway which fill the niches for smaller markets.
Coinbase also doesn’t offer any significant financial benefits for users to switch from OpenSea. The platform only promised no trading fees for a limited time, but users still have to pay gas fees.
Moreover, timing may have also affected the launch of Coinbase’s NFT marketplace. Crypto is still firmly in a bear market and monthly NFT sales are also down from the January high of about $5 billion.
Coinbase NFT’s slow start has also had high-profile, customer-service issues. Samuel Cardillo who is CTO of RTFKT Studios said that he’s been blocked from Coinbase NFT “for absolutely no reason besides getting ETH from sold NFTs.” According to his tweets, he has been trying to restore his access to the platform for weeks since he accessed the platform during the closed beta.
“That’s why I will never ask any of our collectors to use their platform,” Cardillo’s tweet said.