Coinbase Announces Web3 Functionality to Small Subset of Users

Coinbase announced facilitating access to Ethereum-based decentralized applications directly through the Coinbase app.

This update will enable eligible app users to purchase NFTs on marketplaces such as the recently launched Coinbase NFT or OpenSea, trade on decentralized exchanges, and start borrowing, lending, or swapping through DeFi platforms like Compound.

Web 3 on Coinbase App

As revealed by Coibase’s director of product management Rishi Dean, the Web 3 capabilities on Coinbase’s new dapp wallet and browser are operated with multi-party computation (MPC) technology that enables users to have a dedicated on-chain wallet. If they lose their device, the key to the dapp wallet is protected from any compromise, and Coinbase can assist in recovery.

Currently, the new dapp wallet and browser experience are only available to select Android users in the United States, but the company plans to deploy the functionality to all customers in the coming days. Dean stated,

“We want to enable everyone to seamlessly and safely participate in web3, and today’s launch is another step on that journey. We’re rolling out the new dapp wallet and browser experience in the US on Android first to a small subset of users, and plan to expand to all users and platforms soon.”

Coinbase launched the beta version of its highly anticipated NFT marketplace last month. During the initial announcement, the exchange stated that the new product is more than “just buying and selling,” with the end goal being – building a “socially-engaging community around creators and collectors.”

Lackluster Q1 Results

According to the recently published Q1 earnings report, Coinbase appears to be struggling amidst a chaotic phase in the cryptocurrency market.

The exchange reported net losses of $430 million while revenues slumped 35% year on year to $1.16 billion. Its already depressed stock plummeted further beneath the $100 per-share level. Today, Coinbase’s COIN shares opened at $61.7, over a 9% decline from yesterday’s closing price.

Despite the company’s performance, CEO Brian Armstrong is bullish on the long-term technicals. He reassured the customers that Coinbase has no risk of bankruptcy, as some feared, over a 10-Q disclosure filing with the Securities and Exchange Commission (SEC) and that the disclosure came in response to new rules by the regulatory agency.