Needham Positive on Coinbase's (COIN) NFT Business

Needham & Company analyst John Todaro weighed in positively on Coinbase’s (NASDAQ: COIN) NFT business. The company hinted that the much-anticipated launch is coming “soon.”

Todaro is “confident” about the NFT business potential, relative to OpenSea, arguably the biggest NFT platform in the world at the moment. However, the analyst is also cautious about how fast COIN can gain market share in this sector.

“We are positive on new verticals for COIN in NFTs and derivatives but we are not modeling in revenue from these segments until we see further clarity on the product offerings, fees, volume opportunities, etc,” Todaro said in a client note.

The analyst believes that Coinbase could ultimately succeed and have its NFT business as the go-to platform for this type of tokens.

“What we have seen so far has given us confidence in the potential product offering, and we are excited about a possible new spin on an NFT marketplace with Coinbase's social NFT aspect. We also note that peer platforms, such as OpenSea, have received considerable negative attention from the NFT/crypto community in recent weeks from downtime/outage, phishing attacks, removing certain NFT series, etc. In our view, NFT buyers & sellers are very open to additional marketplace competitors to OpenSea; however we note that existing exchanges entering the NFT space have had difficulty gaining adoption relative to OpenSea.”

By Senad Karaahmetovic | [email protected]

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