How will MasterCard’s Partnership with Coinbase Impact NFT Marketplaces?

Mastercard announced its partnership with Coinbase this week. For NFTs, MasterCard’s involvement could help boost the global adoption of crypto-collectibles on the blockchain. However, actual use cases for real-world goods might still be some way off.

According to their website, MasterCard has created a new business to handle crypto assets. The new unit, called MasterCard Blockchain, will reportedly collaborate with Coinbase’s engineering teams in order to integrate their services into the digital asset space.

Impact on Crypto Markets

With this new partnership between MasterCard and Coinbase, buying NFTs will be so much easier. However, this will have quite some impact on the crypto marketplaces. But, what can we expect in terms of game developers and their game markets?

MasterCard enables the movement of money on the blockchain. Buying NFTs with MasterCard is much easier because there are no longer any transfer limits to worry about. Along with this, it also means that you can buy NFTs without having to worry about your digital assets being stolen.

Mastercard’s entry into the crypto industry makes it easier for people to build apps on ERC-721, which is great news for developers of games built on this standard. Although not all purchases will go through MasterCard straight away, at least there are options now that NFTs can be used in regular commerce.

As for the game marketplaces, they can expect to see more people purchase NFTs on their platforms.

A bigger number of players will help them reach their targets (which is always good), but it also means that there are more players being transferred between new wallets every day. So, while it’s great that the crypto-collectibles industry will see an increase in buyers, it might also mean that there is a slight increase in fraud cases for game marketplaces.

Social Networks Get in the Game as Well

NFT Blockchain-Image Courtesy-TheDigitalArtist-Pixabay.com With more players on the blockchain and buying NFTs, we can expect to see more industries using them as well. After all, if MasterCard’s involvement helps make the NFT industry more popular, then why can’t yours?

Social networks are seeing game developers integrating blockchain-based NFTs into their games. Meta has indicated that plans are in place to integrate NFTs with Facebook and Instagram profiles. This means that there will be more pressure on the NFT marketplaces. If more social networks start implementing games on blockchain technology, there is a good chance that they will take a longer look at the blockchain. As a result of this, we might even see them launch their own crypto-collectibles.

On the other hand, MasterCard might start implementing blockchain-based payment methods for social networks as well. Facebook’s Libra project is just one example of this path. And if social networks start using cryptocurrencies directly, the crypto-collectibles industry could see a huge boost overnight, as these players start buying NFTs to create their own personalized 2D avatars.

So what does this mean for the marketplaces? Well, as more investors move into NFTs, there might be an influx of buyers, and they will likely profit short-term.

And if you want to be one of the early NFT buyers, you would need to do it through a secure marketplace. According to the data online, some of the most popular and safest are OpenSea, Axie, and Crypto.com (the last one being a hybrid marketplace). But since the industry is still new, we would advise caution and research.

Nonetheless, We have to wait and keep an eye on the marketplaces to see how these new developments will come into play.

Final Thoughts

It is still too early to tell how the MasterCard partnership with Coinbase will play out. The crypto-collectibles industry looks set for a boost as long as the interest from investors continues. However, it’s hard to say whether NFT marketplaces will see a surge in buyers as well. What do you think of the MasterCard-Coinbase partnership? Do you think it will impact NFT marketplaces positively or negatively? Let us know in the comments below!

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