Coinbase Denies Rumors It is Shutting Down “Struggling” NFT Business

Crypto exchange Coinbase has just dismissed rumors regarding the alleged closure of its NFT business.

We recently shared that we are pausing creator Drops on the NFT marketplace to focus on other features and tools that creators have asked for.

To be clear: We are not shutting down the Coinbase NFT marketplace.

— Coinbase NFT (@Coinbase_NFT) February 1, 2023

What Happened?

Coinbase stated that it recently halted a service that enables creators to perform NFT drops. The move was taken to give more time to develop other services and tools that creators requested.

Jessica Yatrofsky, a New York-based filmmaker and Coinbase NFT partner, is one of the creators affected by Coinbase’s action. Before it was suspended, she was about to launch her NFT collection called XX GEN on the Coinbase NFT marketplace. She noted that the NFT collection launch will still be held in February 2023 with the help of the NFT platform NiftyKit.

In a Wednesday tweet, Yatrofsky alleged that she was privately informed that Coinbase would shut down its NFT marketplace business this month. She urged Coinbase to give public comment on the matter, citing other individual artists like herself who are not aware of the service shutdown.

Shortly after, Coinbase said it would not shut down its NFT marketplace. The company added:

“Our mission for Coinbase NFT hasn’t changed and we remain optimistic about our future as we continue building. We’re excited to find more opportunities to work with creators in the future.”

How Coinbase NFT Business Has Been Fairing

Since its launch in May 2022, Coinbase’s NFT marketplace has served as an opportunity for Coinbase to get its share of the money coming from the NFT market. 

According to data from the analytics platform, Dune, Coinbase has garnered an all-time trading volume of $7.3 million. The revenue is minimal compared to the previously predicted $1.2 billion annual revenue by a Coinbase analyst. The platform also holds a user base of over 16,000.

In December, Coinbase disabled NFT trading on iOS devices due to a disagreement with tech giant Apple. The tech company’s guideline for NFT and crypto trades imposes a 30% commission to facilitate trades. Coinbase, on the other hand, argued that such action is not possible.