Coinbase announced the launch of their NFT (non-fungible token) marketplace, and cryptocurrency enthusiasts all over the world are excited about it. However, many are wondering what makes this marketplace different from other marketplaces like OpenSea, Rarebits, and Biddable which have been in operation for quite some time now. Let’s go over what Coinbase has to offer so you can decide if you want to invest your time and effort into this new blockchain-based auction site or if there are other options available that you would rather explore first.
Details on how the NFTs will be released
Purchasers of these CryptoKitties will get a special type of crypto token called a Fee token. That means they won't own their collectible directly. Instead, they'll hold something akin to an IOU from Coinbase saying they will be able to redeem that Fee token for a CryptoKitty at some point in the future, according to its original design. This helps limit some of the volatility associated with standard cryptocurrencies like Bitcoin and Ethereum—the tech behind CryptoKitties and other blockchain-based games and collectibles. If Fee tokens retain their value through market fluctuations, it could help stabilize prices for buyers and sellers who want a less risky exchange for non-fungible tokens in general.
Other planned features
The NFT marketplace also has a few other planned features, including Support for customizing collectibles with a name, description, and icon; listing multiple collectibles as part of an auction; buying collectibles at auction prices; and potential integration with third-party marketplaces. The company will also include site-wide search functionality so users can find related crypto assets by typing in keywords.
How do I buy/sell/trade NFT?
If you’re a beginner and want to get started with crypto, it can seem complicated. But it doesn’t have to be! As time goes on, more and more crypto-friendly apps are popping up. The majority of these apps only support Bitcoin (BTC) or Ethereum (ETH), so if you want some different options in your portfolio, I recommend signing up for Coinbase. Once there, you can trade/buy Bitcoin or Ethereum (there is also a platform called Coinbase Pro, which supports more than 50 cryptocurrencies) using US dollars. And now that Coinbase has launched its new NFT marketplace, we will soon be able to purchase CryptoKitties (and other non-fungible tokens) directly from our Coinbase accounts! Here’s how: When buying CryptoKitties through Coinbase, you will first buy ERC721 tokens using ETH. Once you own those tokens, they can then be transferred over to MetaMask and exchanged for CryptoKitties. Keep in mind that all purchases made through Coinbase take place at market price – meaning prices may fluctuate before your order is filled – but once they are filled, they are guaranteed by Coinbases insurance policy.
Where is this site hosted?
This may seem like a silly question, but it’s important. Is your company hosting its site on a local server or is it using an outside host? For a multitude of reasons—including security and high availability—it’s always preferable to have a host that has dedicated resources. This means that it should be either hosted in-house or at least with a firm that is owned by another larger organization (such as Amazon Web Services, Rackspace, or Heroku). It also means you should avoid free hosting sites like Weebly and Wix; while they offer minimal bandwidth and space, they are just not capable of handling security concerns.
How are prices set?
When it comes to non-fungible tokens, or NFTs, setting a price is a different process than it is for traditional cryptocurrencies like Bitcoin. With those types of digital assets, you can simply set a price point and let market demand adjust accordingly. For example, if I own 10 BTC and decide I want to sell 2, I could list them on an exchange at any price. If another buyer wanted those coins enough to pay $3K for them, then that’s what they’d get.
Who runs the site?
You might be familiar with the name Coinbase, which is a brand for cryptocurrency exchange and wallet service based in San Francisco. The new NFT marketplace is operated by Toshi, another popular mobile wallet app owned by Coinbase. You can use Toshi for iOS or Android, but only if you’re not in Europe or Japan—for now, it’s been blocked from those markets. But even when it comes to US users, don't expect Toshi to replace your everyday crypto wallet anytime soon. It’s designed exclusively for trading digital collectibles that have been made on Ethereum (it won't work with ERC-20 tokens), so unless your plans include making lots of fancy memes then it may not be worth installing just yet.