A cryptocurrency company plans to completely cease operating its NFT marketplace early next year, a decision that could have a major impact on the NFT space.
Analysts believe this move by Kraken is somewhat unexpected and raises questions about what the future holds for NFTs, considering Kraken is a major player in these types of tokens.
Closed in February 2025
Cryptocurrency platform Kraken has made the difficult decision to close its marketplace on February 27, 2025, bidding farewell to all those who patronize it.
Cryptocurrency company officials say most of the NFT market, including NFT bidding, listing, and sales, will end from November 27th as the market gradually prepares to shut down by the first quarter of 2025. Then he said.
However, the cryptocurrency platform has revealed that users will still be able to withdraw funds until February 27, 2025, even though many of the marketplace's services will no longer be available.
Kraken says it is shutting down its NFT marketplace nearly two years after launching the platform, shifting more resources to new products and services https://t.co/JNnbYqjhoL
— Bloomberg (@business) November 26, 2024
Kraken Eyes developing new products
A Kraken spokesperson confirmed the company's decision and the fate of the market next year.
Kraken officials said this was one of the difficult choices given that the NFT market has become a part of crypto companies.
The spokesperson explained that closing the market will allow crypto companies to explore new avenues, adding that the company also hopes to develop new products and services.
Furthermore, Kraken assures that it has informed all customers about the ongoing changes and that the platform's support team will assist users of the NFT Marketplace to transfer assets to other wallets or Kraken self-custody wallets. I added.
The market capitalization of cryptocurrencies currently stands at $3.2 trillion. Chart: TradingView
personnel reduction
News of the NFT market closure comes nearly a month after the cryptocurrency platform cut its workforce and appointed a new co-CEO.
In October, Kraken laid off 400 employees as part of a reorganization, reducing its workforce by 15%.
At the same time, the cryptocurrency platform has appointed Arjun Sethi, a seasoned Silicon Valley executive, as its new co-CEO, who will assist Dave Ripley in co-leading the company to become the world's largest cryptocurrency platform.
stagnation
Analysts said that the NFT market, previously thriving, has experienced a downturn this year, even recording one of its worst performances in June.
Crypto analysis platform Artemis revealed that the NFT market recorded a 50% decline in June, which coincides with the significant declines also experienced by major cryptocurrencies such as Bitcoin, Ethereum, and Solana. are.
Meanwhile, Somnia CEO and founder Paul Thomas noted earlier this year that the hype around digital collectibles is declining, and user demand for the utility of NFTs could be contributing to the slowdown. He pointed out that there is a gender.
Thomas added that another problem with NFTs is a “lack of originality.”
Over the past few months, some notable figures in the cryptocurrency industry, including billionaire Mark Cuban, have begun offloading NFTs.
On the bright side, Techreport predicted that the NFT market could still reach $2.8 billion by 2028 and its users could reach 14.67 million this year.
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