Kraken to Shut Down NFT Marketplace, What’s the Reason?

Kraken, a leading global crypto exchange, has announced plans to discontinue its Non-Fungible Token (NFT ) marketplace to allocate resources toward upcoming ventures. Users will lose the ability to list, bid, or sell NFTs on the platform starting November 27, 2024, though withdrawals will remain available until the marketplace shuts down completely on February 27, 2025.

Kraken to Shut Down NFT Marketplace

In a recent statement shared, the exchange cited the need to focus on other areas. “We’ve made the decision to close our NFT marketplace so we can shift more resources into new products and services, including unannounced initiatives in-development,” a Kraken spokesperson confirmed via email, according to The Block report. However, the crypto exchange assured users that support would be available to facilitate the transfer of NFTs to either Kraken Wallets or self-custodial wallets.

加密货币交易所 Kraken 宣布将于 2024 年 11 月 27 日停止其 NFT 市场的交易功能，并计划在 2025 年 2 月 27 日全面关闭市场。用户目前仅可提取资产。Kraken 表示，此决定旨在将资源转移至其他新产品和服务，包括尚未公布的计划。Kraken 于 2022 年 11 月推出 NFT 市场测试版，但由于今年以来 NFT…

— 吴说区块链 (@wublockchain12) November 26, 2024

The exchange’s NFT marketplace was first introduced in beta in November 2022, following its announcement in late 2021. The platform’s closure comes amid a downturn in NFT trading activity. While certain collections like CryptoPunks have shown occasional increases in trading volume, the broader NFT market has remained sluggish, with weekly trading volumes failing to surpass $200 million since April 2024.

In a communication sent to users, the company reiterated its commitment to ensuring a smooth transition for NFT holders. The statement highlights the platform’s pivot toward innovation in other areas, as the NFT market struggles to regain momentum. Nevertheless, users in favor of NFTs see this move as a disadvantage for the crypto exchange as the NFT market could bloom again in the future.

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