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Cryptocurrency exchange Kraken has announced the closure of its non-fungible token (NFT) marketplace.
The news was shared through the marketplace’s FAQ section, 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 change means users can no longer list, purchase, bid on, or sell NFTs through the platform.
Kraken has set a final withdrawal deadline of February 27, 2025. After this date, the marketplace will be permanently shut down.
Kraken introduced its NFT marketplace in May 2022, moving out of its beta phase by June 2023. At the time of launch, the marketplace featured over 250 NFT collections and supported Ethereum, Polygon, and Solana blockchains. However, its operation has now ended after just over a year of full functionality.
While Kraken has not shared specific reasons for the shutdown, several factors may have contributed.
The NFT market has faced significant downturns over the past two years. For example, NFT sales experienced sharp declines in mid-2024, with a nearly 50% drop recorded in both May and June compared to previous months.
Competitive pressures likely played a role as well. Platforms like OpenSea, Blur, and Magic Eden have dominated the NFT space, making it harder for smaller or newer players to gain traction.
Legal uncertainties surrounding NFTs might have added to the challenges. The U.S. Securities and Exchange Commission (SEC) has recently scrutinized NFTs, with several platforms facing regulatory action. In August, OpenSea received a Wells notice from the SEC, alleging that NFTs sold on the platform might be considered securities.
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