NFT cryptocurrency exchange platform Coinbase announced that it will stop releasing new collections to focus on other products in the ecosystem.
NFT cryptocurrency exchange platform Coinbase announced that it is suspending new collection releases to focus efforts on other products in the ecosystem.
“We recently announced that in order to focus on other features and tools that [NFT] creators have requested, we are suspending drops for creators on the NFT trading platform. To be clear, we are not shutting down Coinbase NFT,” Coinbase said in a statement.
This was Coinbase’s response to artist Jessica Jatrofsky, who had previously announced that there would be no official launch of her NFT collection on the platform.
Coinbase NFT Drops allowed token creators to launch collections directly on the marketplace, rather than having to upload existing collections as they do on OpenSea. Since its launch in the spring of 2022, Coinbase NFT has continued to release new features for its marketplace, including a mass management tool, rarity filters, and listings. However, according to Dune Analytics, Coinbase NFT’s all-time trading volume is 4,455 ether (ETH), or about $7 million, while OpenSea’s trading volume in January alone was 306,645 ETH, or about $483 million.
It’s unclear exactly why Coinbase NFT has stopped launching new collections. It could be due to a lack of staff, as Coinbase, like many other crypto firms, has continued to lay off employees over the past year. Just last month, Coinbase conducted another round of layoffs, cutting another 950 employees.
In addition, the cryptocurrency firm has been forced to spend millions of dollars due to issues with regulators. In early January, for example, Coinbase had to pay a $50 million fine and spend an equal amount to improve its Know Your Customer system as part of an agreement with the New York City Department of Financial Services (DFS). Later that month, the Dutch central bank fined Coinbase’s European subsidiary, Coinbase Europe, €3.3 million for violations of local financial regulations.
