Cryptocurrency trade Kraken has introduced the closure of its non-fungible token (NFT) market.
The information was shared by {the marketplace}’s FAQ part, stating, “We have decided to close the Kraken NFT marketplace so we can shift resources into new products and services.”
{The marketplace} has already entered withdrawal-only mode as of November 27, 2024. This variation means customers can not record, buy, bid on, or promote NFTs by the platform.
Kraken has set a closing withdrawal deadline of February 27, 2025. After this date, {the marketplace} will likely be completely shut down.
Kraken launched its NFT market in Might 2022, transferring out of its beta part by June 2023. On the time of launch, {the marketplace} featured over 250 NFT collections and supported Ethereum, Polygon, and Solana blockchains. Nevertheless, its operation has now ended after simply over a yr 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 Might and June in comparison with earlier months.
Aggressive pressures seemingly performed a job as nicely. Platforms like OpenSea, Blur, and Magic Eden have dominated the NFT house, making it more durable for smaller or newer gamers to achieve 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 going through regulatory motion. In August, OpenSea obtained a Wells discover from the SEC, alleging that NFTs offered on the platform is perhaps thought-about securities.
