Analyst Notes: Coinbase NFT Advantages

Key Insights

• Coinbase's NFT platform aims to differentiate from existing platforms by combining a marketplace experience with social media features.
• Coinbase — and centralized NFT exchanges — will have significant advantages when it comes to capital, custody, distribution, brand, IP and partnerships, and vertical integrations.
• However, centralized exchanges will also have significant disadvantages when it comes to listing certain NFTs, regulatory compliance, and integrating permissionlessly with the rest of the Web3 ecosystem.

The NFT marketplace landscape is heating up, with Coinbase officially launching its NFT platform. Centralized NFT exchanges like Coinbase have some key advantages as well as some disadvantages as they seek to become dominant NFT exchange venues.

Coinbase NFT is Here™

While I was not graced with an invite, from the looks of it, Coinbase has opted to build a social marketplace — think Instagram meets Public — where it provides basic marketplace discovery features along with social features such as profiles, likes, follows, and comments. Notably, leading NFT marketplace OpenSea has never had any of these features, which might allow Coinbase to build a better social experience.