Kraken Closes NFT Marketplace to Invest in New Products and Services

Kraken NFT

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

November 27, 2024 04:14 EST

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Kraken is shutting down its NFT marketplace nearly two years after its launch.

“We’ve made the decision to close our NFT marketplace so we can shift more resources into new products and services, such as unannounced initiatives in-development,” a Kraken spokesperson told Cryptonews.

“Clients have been informed of the changes and our team will support them as they move their NFTs to their Kraken Wallet or a self-custodial wallet of choice.”

The exchange notified users that, starting Nov. 27, the NFT marketplace will enter withdrawal-only mode. Users won’t be able to list, buy, bid, or sell NFTs, but can still transfer them to self-custodial wallets.

Users must withdraw their NFTs by Feb. 27, 2025. Following this date, Kraken will completely shut down its NFT marketplace, ending all custody services.

Kraken Cuts 15% of Workforce and Appoints New Co-CEO

Kraken’s decision comes soon after it trimmed 15% of its workforce, laying off 400 employees from a team of 2,600, and appointing a new co-CEO. The layoffs included chief operating officer Gilles BianRosa and chief technology officer Vishnu Patankar.

Earlier this year, Kraken aimed to raise $100m in a funding round as a step toward an IPO. However, it is yet to finalize the funding.

NFT Market Struggles to Recover From Post-2021 Collapse

The NFT market saw a dramatic transformation in 2021, driven by record-breaking sales. Beeple’s “Everydays: The First 5000 Days” sold for $69m at Christie’s, thrusting NFTs into the spotlight. High-profile sales like Edward Snowden’s “Stay Free” and several CryptoPunks fueled the growing NFT frenzy.

In Jan. 2022, NFT trading volumes peaked at around $17b but quickly collapsed, dropping 97% by September. This decline paralleled a broader cryptocurrency market downturn and waning speculative interest in NFTs.

By 2024, the market had not returned to its 2021 highs, with many collections trading at significantly lower values. This shift reflects a growing focus on practical uses for NFTs within digital and virtual ecosystems, rather than treating them solely as investment assets.