Coinbase’s main source of revenue is trading fees. Due to this, Coinbase’s revenue can highly decrease when prices decline or volatility is high.
On a conference call on Tuesday, Coinbase’s CEO said the company had third-quarter revenue of $1.3 billion. The declaration eased concerns that the company’s revenue was below the forecast despite being up fivefold from a year earlier.
It was, therefore, necessary to diversify the business to counteract possible declines during volatile times.
Thus, Brian Armstrong, the CEO of Coinbase, announced that the company would open an NFT marketplace where people could trade digital arts and other items.
Unlike other platforms, the company aims to provide an exceptional user experience, where users will not only be able to buy and manage their holdings on a platform but also engage in social media activities, as they can on platforms like Instagram.
The Coinbase site will allow users to showcase their NFTs and let others follow their profiles for updates.
More than 2.5 million people have already signed up to use Coinbase’s new NFT since its announcement last month.