A cryptocurrency firm has a complete plan Stop the operation of its NFT marketplace Early next year, a decision that could have a huge impact on the NFT space.
Analysts consider Kraken’s move somewhat unexpected, questioning what the future holds for NFTs considering Kraken to be a major player in these types of tokens.
Closing on February 2025
Crypto platform Kraken made the drastic decision to shut down its marketplace on February 27, 2025, saying goodbye to all the people who patronize the marketplace.
Crypto firm officials said that Starting from November 27Most NFT markets such as bidding, listing and selling of NFTs will be closed, as the marketplace slowly prepares to close its doors by the first quarter of 2025.
However, the crypto platform clarified that even though many of the marketplace’s services will no longer be available, its users can still withdraw their funds before February 27, 2025.
Kraken is shutting down its NFT marketplace nearly two years after the platform was launched, saying it is shifting other resources to new products and services. https://t.co/JNnbYqjhoL
— Bloomberg (@Business) November 26, 2024
Kraken Eyes is developing new products
A Kraken spokesperson confirmed the company’s decision and its market fate next year.
The Kraken official said it was one of those difficult choices to make considering how much the NFT marketplace has been a part of the crypto firm.
The spokesperson gave this information Closing its market The crypto will allow the company to explore new avenues, adding that the firm also wants to develop new products and services.
Additionally, Kraken assured that they have informed all of their customers about the ongoing changes, adding that the platform’s support team is advising NFT Marketplace users to move their assets to other wallets or the Kraken self-custody wallet. will assist in the transfer.
Reduction of employees
News of the NFT marketplace closing comes nearly a month after the cryptocurrency platform cut its workforce and hired a new co-CEO.
In October this year, Kraken has reduced its workforce After 15% laid off 400 employees, saying it was part of their organizational restructuring.
Additionally, the crypto platform has hired a new co-CEO, veteran Silicon Valley executive Arjun Sethi who will assist Dave Ripley in co-managing the company as it navigates its way to becoming the world’s largest crypto platform. .
stagnation
Analysts said that the NFT market used to be booming but this year, it experienced a decline and also recorded one of its lowest performances in June.
Crypto analytics platform Artemis revealed that NFT markets fell by 50% in June, coinciding with significant declines experienced by major cryptocurrencies such as Bitcoin, Ethereum, and Solana.
Meanwhile, Paul Thomas, CEO and founder of Somnia, commented on the waning hype surrounding digital collectibles earlier this year, noting that consumer demand for the utility of NFTs may have contributed to its slowdown. .
Another problem with NFTs, Thomas adds, is “lack of originality”.
In the past months, well-known figures in the crypto space have started offloading their NFTs such as billionaire Mark Cuban.
On the bright side, Techreport predicts that the NFT market could still reach $2.8 billion by 2028 and its users could reach 14.67 million this year.
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