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Crypto exchanges want to profit from the NFT boom – Crypto News

  • Coinbase and Kraken are pushing NFT marketplace plans
  • Coinbase hopes to create a social community while Kraken does not offer gas fees

As the sell-off in cryptocurrency markets rages on, digital asset exchanges looking to diversify their earnings outside of trading fees are turning to another part of the industry: NFTs.

US-based crypto exchanges Coinbase and Kraken each have their own NFT (non-fungible token) marketplaces in the works.

Coinbase’s entity, which calls it a “Web3 social marketplace,” transitioned to open beta testing on Wednesday, allowing users to create a profile and trade on it platform.

As part of the test, Coinbase will not offer transaction fees for a limited time, the exchange said in a blog entry. Fees that “conform to Web3 industry standards” are to follow.

Coinbase and Kraken both face stiff competition from incumbent NFT giant OpenSea – leading to such money-losing promotions to gain market share as upstarts.

Kraken has opened a waiting list for its NFT marketplace, which is set to launch later this year.

The exchange said once an NFT is held in custody at Kraken, users will not have to pay gas fees that drive transactions on the Ethereum blockchain. Gas tariffs fluctuate based on supply and demand and have risen recently as investor interest in digital collectibles increased after a sell-off at the end of 2021.

The fee-free structure “helps you build your dream collection with near-instant transfer speeds and the peace of mind that spikes in network activity won’t impact the cost of your purchases and trades,” Kraken wrote in a blog entry.

The launches come as interest in the NFT space, which had dwindled, begins to pick up again. According to data from crypto analytics firm Nansen, weekly NFT trading volumes rose about 30% towards the end of April from March lows.

Major NFT trading platform OpenSea posted a new daily trading record this week, with Ethereum NFT trades worth more than $476 million on Sunday Data from dune.

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The Crypto Exchanges Look To Cash in on NFT Boom post is not financial advice.

Source: Crypto News Austria

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