Cryptocurrency trade Kraken has introduced the closure of its non-fungible token (NFT) market.
The information was shared by {the marketplace}’s FAQ section, stating, “We’ve got determined to shut the Kraken NFT market so we are able to shift sources into new services and products.”
{The marketplace} has already entered withdrawal-only mode as of November 27, 2024. This modification means customers can not checklist, buy, bid on, or promote NFTs by the platform.
Kraken has set a last withdrawal deadline of February 27, 2025. After this date, {the marketplace} shall be completely shut down.
Kraken introduced its NFT market in Could 2022, moving out of its beta phase by June 2023. On the time of launch, {the marketplace} featured over 250 NFT collections and supported Ethereum, Polygon, and Solana blockchains. Nonetheless, its operation has now ended after simply over a 12 months of full performance.
Whereas Kraken has not shared particular causes for the shutdown, a number of elements might have contributed.
The NFT market has confronted vital downturns over the previous two years. For instance, NFT gross sales skilled sharp declines in mid-2024, with an almost 50% drop recorded in each Could and June in comparison with earlier months.
Aggressive pressures possible performed a job as properly. Platforms like OpenSea, Blur, and Magic Eden have dominated the NFT house, making it tougher for smaller or newer gamers to realize traction.
Authorized uncertainties surrounding NFTs may need added to the challenges. The U.S. Securities and Trade Fee (SEC) has lately scrutinized NFTs, with a number of platforms dealing with regulatory motion. In August, OpenSea received a Wells notice from the SEC, alleging that NFTs offered on the platform is likely to be thought of securities.
