Kraken is shutting down its NFT marketplace nearly two years after its launch to focus resources on new products and services.
The exchange notified users that, starting Nov. 27, the NFT marketplace will enter withdrawal-only mode. Users won’t be able to list, buy, bid, or sell NFTs, but can still transfer them to self-custodial wallets.
Users must withdraw their NFTs by Feb. 27, 2025. Following this date, Kraken will completely shut down its NFT marketplace, ending all custody services.
A Kraken spokesperson didn’t return Cryptonews’ request for comment by press time.
Kraken Cuts 15% of Workforce and Appoints New Co-CEO
Kraken’s decision comes soon after it trimmed 15% of its workforce, laying off 400 employees from a team of 2,600, and appointing a new co-CEO. The layoffs included chief operating officer Gilles BianRosa and chief technology officer Vishnu Patankar.
Earlier this year, Kraken aimed to raise $100m in a funding round as a step toward an IPO. However, it is yet to finalize the funding.
NFT Market Struggles to Recover From Post-2021 Collapse
The NFT market saw a dramatic transformation in 2021, driven by record-breaking sales. Beeple’s “Everydays: The First 5000 Days” sold for $69m at Christie’s, thrusting NFTs into the spotlight. High-profile sales like Edward Snowden’s “Stay Free” and several CryptoPunks fueled the growing NFT frenzy.
In Jan. 2022, NFT trading volumes peaked at around $17b but quickly collapsed, dropping 97% by September. This decline paralleled a broader cryptocurrency market downturn and waning speculative interest in NFTs.
By 2024, the market had not returned to its 2021 highs, with many collections trading at significantly lower values. This shift reflects a growing focus on practical uses for NFTs within digital and virtual ecosystems, rather than treating them solely as investment assets.
The post Kraken Closes NFT Marketplace to Invest in New Products and Services appeared first on Cryptonews.
