A cryptocurrency company plans to do this completely to cease operations of its NFT marketplace early next year, a decision that could have a major impact on the NFT space.
Analysts find this move by Kraken somewhat unexpected, which raises questions about what the future holds for NFTs, as Kraken is a major player in these types of tokens.
Closing in February 2025
The crypto platform Kraken made the difficult decision to close its marketplace on February 27, 2025, saying goodbye to everyone who patronized the market.
Officials of the crypto company said this from November 27will end most of the NFT marketplace, such as bidding, listing and selling of NFTs, as the market gradually prepares to close its doors in the first quarter of 2025.
However, the crypto platform clarified that while many of the marketplace’s services will no longer be available, users will still be able to withdraw their funds before February 27, 2025.
Kraken is closing its NFT marketplace nearly two years after launching the platform, saying it is shifting more resources into new products and services https://t.co/JNnbYqjhoL
— Bloomberg (@company) November 26, 2024
Kraken Eyes develops new products
A Kraken spokesperson confirmed the company’s decision and the fate of its market next year.
The Kraken official said this was one of the tough choices they had to make, given how much the NFT marketplace was part of the crypto business.
The spokesperson explained this close its marketplace would allow the crypto company to explore new avenues, adding that the company also wants to develop new products and services.
Furthermore, Kraken assured that they have informed all its customers of the ongoing changes, adding that the platform’s support team will assist NFT marketplace users in transferring their assets to other wallets or the Kraken self-custody wallet .
Cutbacks in workforce
News of the NFT marketplace’s closure came just nearly a month after the cryptocurrency platform downsized its workforce and appointed a new co-CEO.
In October this year, Kraken reduced its workforce by 15% after it laid off 400 employees, saying this was part of their organizational restructuring.
At the same time, the crypto platform appointed a new co-CEO, veteran Silicon Valley executive Arjun Sethi, who will help Dave Ripley co-manage the company as it moves toward becoming the largest crypto platform in the world.
Stagnation
Analysts said the NFT markets used to thrive but hit a recession this year, even posting one of the lowest performances in June.
Crypto analytics platform Artemis revealed that the NFT markets recorded a 50% decline in June, coinciding with the significant drop also experienced by major cryptocurrencies such as Bitcoin, Ethereum and Solana.
Meanwhile, Paul Thomas, CEO and founder of Somnia, commented early this year on the waning hype surrounding digital collectibles, noting that user demand for the usefulness of NFTs may have contributed to their slowdown.
Thomas added that another problem with NFTs is the “lack of originality.”
In the previous months, well-known personalities in the crypto space have started transferring their NFTs, such as billionaire Mark Cuban.
On the plus side, Techreport predicted that the NFT market could still reach $2.8 billion by 2028 and the number of users could reach 14.67 million this year.
Featured image of Wall Of Traders, chart from TradingView