Kraken Shuts Down NFT Marketplace What's Next? 2024 11 27 ( Crypto Starter) Crypto News

Kraken is set to close its NFT marketplace nearly two years after it was launched, redirecting its efforts towards new products and services.

Starting November 27, the NFT marketplace will switch to a withdrawal-only mode. Users will no longer be able to list, buy, bid, or sell NFTs, but they can still transfer their assets to self-custodial wallets.

All NFTs must be withdrawn by February 27, 2025. After this date, Kraken will fully discontinue its NFT marketplace and cease all custody services.

A representative from Kraken did not respond to Cryptonews’ request for comment by the time of publication.

Kraken recently laid off 15% of its workforce, which amounted to about 400 employees from a total of 2,600, and appointed a new co-CEO. The layoffs included key figures such as chief operating officer Gilles BianRosa and chief technology officer Vishnu Patankar.

Earlier this year, Kraken sought to raise $100 million in funding as part of its plans for an IPO, but it has not yet secured the necessary funding.

The NFT market has struggled to bounce back since its peak in 2021. That year saw unprecedented sales, including Beeple’s “Everydays: The First 5000 Days,” which fetched $69 million at Christie’s, bringing NFTs into the limelight. Other notable sales, like Edward Snowden’s “Stay Free” and various CryptoPunks, contributed to the NFT craze.

In January 2022, NFT trading volumes reached around $17 billion but plummeted by 97% by September. This decline mirrored a broader downturn in the cryptocurrency market and a decrease in speculative interest in NFTs.

As of 2024, the NFT market has not regained its 2021 highs, with many collections now trading at much lower values. This change indicates a shift towards practical applications for NFTs in digital and virtual environments, rather than viewing them solely as investment opportunities.