Coinbase NFT growing? Coinbase shares on the verge

NFTs to the rescue? – Coinbase shares fell a historically low level during the meeting on Friday 22 April. The fall occurred two days later launch of the beta of its new NFT marketplace. The company announced its intention to enter the NFT area last October. Thus, more than 1.5 million people are written on the waiting list. The beta launch started on April 20, 2022.

Shares fall as the NFT market grows

Coinbase shares have fallen tremendously since the beginning of the month. The launch of the beta version of its NFT marketplace last week did not change the trend. Friday, COIN hit bottom at $ 131.25 and then closed at $ 131.52.

Anyone can access the NFT Marketplace website at this time. But with the launch of the beta, only a select few customers can buy and sell NFTs there. The platform is based on Ethereum with payments in ETH. The company plans to integrate other blockchains in the future and add unique features that will allow users to engage more.

John Todaro, senior analyst at Needham & Company, said the real issue is know if the marketplace will succeed in imposing itself or not. Even though everyone had been waiting for it for months.

“Investors are now asking ‘can you really scale it, can it make volume, can it really compete with OpenSea?’ (…) Will it really increase revenue, or will it just hit and maybe go down. ”

John Todaro, Principal Research Analyst at Needham & Company

Coinbase faces competition from OpenSea and LooksRare, which dominate the market. Major crypto exchanges FTX.US and Binance, which also launched NFT marketplaces last year, are also strong competitors.

John Todaro said the performance of Coinbase shares over the last few months has also been reflected broader market trends. He pointed out that interest rates have had an impact on tech stocks in general and that cryptocurrency volume has fallen.

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Expert advice: Coinbase will have to wait for scaling

Needham & Company released a note that when Ethereum scales, Coinbase’s NFT marketplace could very gradually increase revenue.

“We remain optimistic about the stock (Coinbase), we think it is basically very attractive (…) If they can scale it, I think it will really increase the stock.”

John Todaro, Principal Research Analyst at Needham & Company

In a report released in February, the JMP Group also indicated that Coinbase could benefit from the NFT market in the long run.

“The company is investing in a number of areas that may not have such an immediate impact, but which should contribute significantly to long-term earnings, including its upcoming NFT platform.”

Excerpt from JMP Group report

Coinbase is betting on the future with its Coinbase NFT marketplace, despite the decline in its shares.

Jeff Dorman, co-founder and chief investment officer of the crypto-asset management firm Arca, meanwhile, said he was still Too early for Coinbase’s NFT marketplace to prove its worth to investors.

“Given that NFTs as a whole are still not widely valued or accepted by ordinary financiers, we believe it will take many quarters to see real traction before stock analysts give credit to Coinbase.”

Jeff Dorman, Co-Founder and Chief Investment Officer of Arca Corporation

According to him, the retail decline has added further pressure to Coinbase.

“Until Coinbase’s subscription and service companies account for a larger share of their revenue, Coinbase will continue to suffer in low-volume / low-retail environments”

Jeff Dorman, Co-Founder and Chief Investment Officer of Arca Corporation

L ‘Coinbase listing had caused the ink to flow last year. However, it is clear the competition is fierce in the area. Yes The Coinbase campaign panicked at launchthere is still something to be done to maintain it.

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