- Coinbase NFT is shuttering its Creator Drops platform
- Users will now no longer be able to mint NFTs on Coinbase NFT, if they ever were
- Coinbase has denied that it is shutting down the entire platform
Coinbase NFT has denied rumors that it is closing down, despite shuttering its Creator Drops platform. The exchange’s NFT suite has been open nine months, but clearly something isn’t working out, with the company removing the ability for people to mint new NFTs thanks to a desire to “focus on other features and tools that creators have asked for.” The platform has struggled with competition and a bear market, and it believes that dropping its Creator Drops platform and turning its attention elsewhere will help kick start its fortunes.
Low Revenue Means Coinbase Needs to Cut Back
Coinbase NFT was first announced in October 2021 and launched in beta mode six months later. It went fully live in May 2022, at possibly the worst possible moment, as the bottom swiftly fell out of the crypto and NFT markets. The result has been a huge deficiency in income compared to what Coinbase can have expected, with data from Dune analytics showing an absolutely paltry $49 in 24-hour revenue.
This performance, and the costs of launching and running it, have led to it taking action to reduce its outgoings:
Rest assured, 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 with creators in the future.
— Coinbase NFT (@Coinbase_NFT) February 1, 2023
Replies were, as could be expected, of a more caustic nature:
I forgot you existed
— greg (@greg16676935420) February 1, 2023
Thank god. The 7 people who use your platform were worried
— borovik.eth (@3orovik) February 1, 2023
Coinbase Failing to Innovate
Coinbase has failed to innovate where other platforms have in order to gear up for the next bull market, or even just survive the bear market, with its desire to create a social community around NFTs not really panning out.
It’s not clear how much time or money losing the Creator Drops feature will save, but one thing’s for sure – Coinbase NFT will now have to pay someone to remove the “For those who build” from its Twitter bio.
