Coinbase Enters Prediction Markets with Base App
Coinbase is leaning into the fast-growing world of prediction markets with its new Base App, a rebranded evolution of the Coinbase Wallet.
Base App’s Prediction Market Play
Built on Coinbase’s Ethereum Layer 2 network, Base, the app integrates social media, trading, payments, and hundreds of mini-apps, including prediction markets, aiming to redefine how users engage with crypto.
The Base App, unveiled at Coinbase’s “A New Day One” event, is an all-in-one platform combining Farcaster-powered social feeds, XMTP-encrypted messaging, one-tap USDC payments via NFC, and mini-apps for gaming and prediction markets. Users can tokenize posts via Zora, earn tips, and track friends’ trades in real-time, all tied to a Base Account smart wallet.
Prediction markets, where users bet on outcomes like elections or pop culture events, are a core feature, tapping into the crypto-driven trend popularized by platforms like Kalshi and Polymarket, which saw $2.6 billion in transactions during the 2024 election season.
Strategic Shift for Coinbase
Coinbase’s push into prediction markets is part of a broader strategy to move beyond speculative trading, as articulated by CEO Brian Armstrong, who aims to make USDC the world’s top stablecoin and Coinbase the leading financial services app within a decade.
By embedding prediction markets, Base App targets users uninterested in traditional crypto trading, leveraging mini-apps to drive engagement.
The app’s Base Pay feature, soon enabling Shopify merchants to accept USDC with 1% cashback for U.S. users, further boosts crypto’s real-world utility, though rewards are unavailable in the EU and Canada.
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