By James Davis
Crypto exchange Coinbase has signaled that it will not abandon its NFT marketplace despite recording a sharp drop in volume over time. The exchange has also come under scrutiny by shareholders after reporting over $570 million in losses for its fourth quarter.
The questions raised by the shareholders appear to express concerns about the exchange’s financial health. One of the questions focused on the Coinbase NFT marketplace, which was launched last May. It asked the exchange to reveal how much money the firm had lost in relation to this NFT venture.
Coinbase NFT Marketplace Performs Poorly over the Past Week
The shareholder also asked how Coinbase planned to expand its NFT market share because it has been performing poorly. Over the past seven days, the exchange’s NFT marketplace has only processed 40 trades and posted less than four Ethereum ($5,500) in trading volume, according to data from Dune.
The trades on Coinbase are just a drop in the ocean when compared to market leaders like Blur and OpenSea, which have processed 302,000 and 54,000 trades, respectively, over the past week.
In response to the question, Coinbase President Emilie Choi said that the firm continues to see its NFT marketplace as a worthwhile project. However, she did seem to suggest that Coinbase will devote fewer resources to the project going forward. Choi said the exchange had already reduced its NFT team.
However, she did not disclose the number of employees sent home from that department. In January, Coinbase let go over 920 employees.
Coinbase NFT Team Makes Changes
Meanwhile, the Coinbase NFT team has been eliminating some elements of the project. Early this month, the team said it was planning to pause future creator drops on the platform to focus on other tools and features requested by the creators.
Choi said the NFT team would continue to build the marketplace because she sees a massive long-term opportunity in helping customers create and discover NFTs. In addition, the Coinbase President revealed that the firm will now devote 9% of its resources to the NFT marketplace.