Kraken, a well-known global cryptocurrency exchange, has announced that it will be shutting down its NFT marketplace by February 27, 2025. This decision comes as the company focuses on blockchain development. The platform has already stopped accepting new NFT listings, and users can only withdraw their assets until it is closed. Kraken's move marks a major shift in strategy, especially considering the NFT space's struggles over the past year.
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A spokesperson for Kraken confirmed that the platform had shut down its NFT Marketplace, saying, “We are closing our NFT Marketplace in order to redirect resources to new products and services, including several unannounced projects currently in development.” “We have decided to close it,” he said. They added that clients have been notified of the change and that Kraken's team will assist them in transferring their NFTs to their Kraken wallet or self-custodial wallet of their choice.
NFT market struggles force Kraken to rethink priorities
The NFT market once saw a surge in popularity, reaching its peak in 2021-early 2022. However, as the market cools, Kraken joins the ranks of other platforms that are reconsidering their NFT business. While many are turning away from NFTs, Kraken's focus on blockchain technology stands out. According to Cointelegraph, Kraken is doubling down on decentralized finance (DeFi) and blockchain innovation instead of focusing on sectors facing severe downturns.
The exchange is preparing to launch its own blockchain in early 2025. It aims to power decentralized applications (dApps) while avoiding the speculative volatility associated with native tokens. Kraken's decision to prioritize blockchain development is closely tied to its goal of providing more robust DeFi services.
