Kraken has decided to pull the plug on its NFT marketplace, just two years after launching.
The platform is winding down and giving users a limited window to withdraw their tokens before a complete shutdown in February 2025.
Bored sector?
Kraken’s NFT marketplace have had enterwithdrawal-only mode, and this means users have until February 27, 2025, to retrieve their NFTs.
In an email to users, Kraken reassured them that support is available.
“Our team is ready to assist with any questions or guidance needed for withdrawing NFTs. Please don’t hesitate to contact Kraken Support.”
Launched during a time when the NFT market was already cooling off, Kraken’s marketplace was late, struggled to gain traction amid falling trading volumes and waning investor interest.
Unfortunately, this mirrors the trend of many NFT projects, which now average a lifespan of just 1.14 years.
A strategic shift
Kraken’s decision to close its NFT marketplace aligns with its launch of Ink, a DeFi platform introduced in October.
This shift suggests that Kraken is pivoting away from NFTs and focusing on areas that might be more profitable and less bogged down by regulations.
The regulatory environment surrounding NFTs has been tricky, especially following the SEC’s Wells notice to OpenSea in August, which hinted at possible enforcement actions.
This scrutiny adds another layer of complexity for centralized platforms like Kraken.
Plus, with decentralized marketplaces gaining popularity, offering users more control and potentially avoiding some regulatory headaches, it’s no wonder Kraken is reconsidering its strategy. Less money, more f*ckery is just doesn’t worth it.
The NFT market’s struggles
The decline of the NFT market is hard to ignore. Trading volumes have plummeted since their peak in 2021, and many once-high-profile projects are now struggling.
A study by NFTEvening and Storible revealed that a 98% of NFT projects launched in 2024 have already flatlined, so creators are finding it tough to keep momentum in an increasingly crowded market.
Holders are also feeling the pinch too, with an average decline of 44.5% in the value of their holdings since 2023.
“While NFTs remain an area of innovation, the market is oversaturated.”
The NFTEvening team suggest creators need to rethink their strategies and focus on building communities and real-world utility if they want to stand out and succeed.
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