On Wednesday, Coinbase NFT has announced that they are halting any upcoming NFT drops to focus on other features and tools. Rumors are now circulating in the community that Coinbase’marketplace is shutting down but according to the Coinbase NFT team, they are not.

The Coinbase NFT team believes that pausing future NFT drops will bring more focus and efficiency to what needs to be done on its features as the NFT creators have been requesting it for quite some time. The question is, why pause it?

The reason is unclear but it could be due to Coinbase being understaffed as they have been laying off employees over the past year. In fact, Coinbase had to let go of another 950 of its staff last month. 

In addition to how Coinbase is doing, it seems that Coinbase failed to hit its predicted annual revenue of $1.2 billion as it only gathered an all-time trading volume amounting to $7.3 million since its launch last year. In December, Coinbase cut ties with Apple after arguing about the 30% commission that Apple asks to facilitate trade which Coinbase can’t agree about. Coinbase has then disabled NFT trading on iOS devices.

Since then, Coinbase’s NFT marketplace continue to draw criticism from the community due to the low number of its user base.