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CoinbaseNFT's Launch coincides with OpenSea Trademark Applications. Can it beat OpenSea?

CoinbaseNFT's Launch coincides with OpenSea Trademark Applications. Can it beat OpenSea?

OpenSea had a strong start to the year, with NFT trading volumes reaching an all-time high in January of this year.

January saw ETH trading volume surpass the $3.42 billion record set in August, according to Dune Analytics.

In the months of February and March, trading volumes dropped significantly.

On Wednesday, DC Trademark Attorney Michael Kondoudis announced the trademark filings on Twitter.

Two new trademark applications for OpenSea and its logo were filed by Ozone Networks Inc. on April 15, 2022.

A wide range of virtual, cryptographic, and financial products and services will be the subject of the filings. These are a few examples:

Wallets for digital currencies and assets

Digital currencies, tokens, and collectibles are all being created by NFTs

Cryptocurrency trading in the virtual and digital worlds

CoinbaseNFT, the company's web3 NFT marketplace, was reportedly launched on Wednesday, according to the report.

Users will only be able to access a limited number of features in the beta version. For a limited time, CoinbaseNFT, which is running on the Ethereum blockchain, plans to go head-to-head with OpenSea by not charging transaction fees.

February and March were the worst months of 2022 for trading volumes for OpenSea.

February saw ETH trading volume fall to $3.58bn; however, this was still above August's previous all-time high of $3.38bn.

In March, however, ETH trading volumes took a more significant hit.

In March, ETH trading volumes fell to $2.49 billion, well below the $3.42 billion in August and the $4.97 billion in January, according to Dune Analytics data.

Several factors may have played a role in the decline in trading volumes at OpenSea. Prices of cryptocurrencies, an increase in illegal activity, and a rise in demand for cryptocurrencies are just a few examples.

The number of NFT marketplaces could also be a contributing factor.

Launched in January, LooksRare (LOOKS) is said to have exceeded OpenSea trading volume in January. The launch of CoinbaseNFT may become OpenSea's biggest near-term rival, even though other marketplaces have already launched ahead of that of CoinbaseNFT.

One of the world's largest cryptocurrency exchanges, Coinbase (COIN), has finally opened the beta version of its long-awaited non-fungible token (NFT) marketplace for the first time.

For the first time, a social media component has been added to the marketplace, which was first unveiled in October of last year.

As with other popular social media sites like Instagram and TikTok, the "For You" feed on this one will show user personal profile and user-followed accounts. "Likes" and comments will be allowed on posts, according to a CoinDesk interview with a Coinbase official.

On Tuesday, Sanchan Saxena, Coinbase's vice president of product, told reporters that the company's platform is "more than just buying and selling, it is about developing your community." Ensuring you can interact and engage with them on the platform is the key to this. As I indicated in the beginning, it is a really social marketplace."

To foster "an open NFT ecosystem for everyone," the exchange has decided to support "all sorts of self-custody wallets" in addition to the official Coinbase Wallet. Using a credit card is also an option on the platform.

A "minimal, single-digit fee" will eventually be applied, according to Saxena, the marketplace's co-founder and chief executive officer.

Coinbase's NFT plans

As part of its "progressive decentralization" strategy, Coinbase plans to move some features from centralized to on-chain.

Users will be able to leave comments on the Coinbase platform, which will then be transferred to the blockchain.

What the exchange is calling a user's "follower graph," they will be able to transfer between platforms.

Could this be the start of something new for NFTs?

Currently, a social media-focused NFT market is novel, but this could change as more players enter the market.

Coinbase has followed FTX.US into the NFT trading market, according to a press release.

Facebook CEO Mark Zuckerberg made the announcement in March that NFTs would be coming to Instagram, but the details of the integration remain a mystery.

OpenSea, which, according to DappRadar data, has hosted 95% of all Ethereum-based NFT traders in the past 30 days, will be the first target for any marketplace entering the Ethereum NFT market, social media focus or not.

OpenSea Review

The art world has been taken over by NFTs. OpenSea is at the heart of the $17 billion NFT market.

OpenSea is the Amazon of non-fungible tokens, or NFTs for short. People can easily create, sell, and buy NFTs on this online market. As one of the most popular NFT trading platforms, Dune Analytics estimates that it has over 1.5 million active users.

OpenSea had its busiest month ever in January. In August of 2021, it set a monthly trading volume record of nearly $5 billion.

Despite its rapid expansion, the platform has come under fire from users who reported scams and plagiarism. Cybercrime involving cryptocurrencies rose by nearly 79 percent year over year in 2021, according to Chainalysis data.

According to Kim Grauer, director of research at Chainalysis: "We've concerned with market manipulation, wash trading and plagiarism as well as your typical phishing scam, which is also something that has been something to do with the NFT space. So we do see this link to fraud in overall market activity."

"OpenSea's policies, tools, and service are designed with everyone's well-being in mind, and we're doing everything we can to keep everyone on the platform safe and secure."

Along the way, there have been some hiccups. OpenSea's competitors may be able to take advantage of the company's many scandals in the NFT market, which is estimated to be worth tens of billions of dollars.

Some of OpenSea's rivals have different business models than the company. Decentralized art marketplaces like LooksRare and Rarible give their fees back to the users rather than keeping them for themselves, whereas curated art marketplaces like Foundation and SuperRare try to showcase exclusive artists. There are still a number of smaller marketplaces that operate on smaller blockchains, or cater to a specific project.

As regulators pay more attention to the crypto industry, competition in the NFT space has also intensified. In light of this, what's next for the world's largest NFT market?