Kraken Pulls The Plug On NFT Marketplace After Just Two Years
Crypto exchange Kraken has announced the closure of its non-fungible token (NFT) marketplace nearly two years after its launch. Instead, the company aims to allocate resources toward new products and services.
“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,” a Kraken spokesperson told Bloomberg on 26 November 2024.
The move comes amid a sluggish recovery for the NFT market following the 2022 crypto bear market. While cryptocurrencies like Bitcoin have seen substantial rebounds, the NFT sector has struggled to regain its footing.
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NFT Index Remains 81% Below 2022 Peak
Notably, the Bitwise Blue-Chip NFT Collections Index has risen 90% since pro-crypto candidate Donald Trump’s presidential victory three weeks ago. However, it remains 81% below its peak in April 2022.
According to an industry report by DappRadar, NFT trading volume reached a yearly low of $471 million in August, a 16% decline from July. NFT trading activity reached $3.9 billion in the first quarter of 2024 from $12.6 billion during the same period of 2022.
Kraken’s decision also aligns with broader changes within the company. Over the past month, Kraken has reduced its workforce by 15% and announced significant leadership changes, including the appointment of a new CFO and co-CEO.
In addition, the exchange is preparing to launch a blockchain called Ink early next year. Ink will facilitate decentralized applications for trading, lending, and borrowing without intermediaries, leveraging technology similar to Coinbase’s Base platform.
BREAKING: Kraken to shutter its NFT marketplace pic.twitter.com/5Wa4ZpTOxz
— Bryptos (@Bryptos_) November 26, 2024
Kraken has also been exploring new ventures as part of its growth strategy, including a potential initial public offering (IPO). Earlier this year, reports suggested the firm was considering a final funding round ahead of a possible IPO.
The NFT marketplace was initially launched in December 2022 with the vision of offering more than just digital art collection.
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Kraken Continues To Explore New Markets
Kraken has been exploring new markets and products recently, including launching a wrapped bitcoin token called kBTC on Ethereum and OP Mainnet, and eyeing a potential initial public offering (IPO), despite regulatory challenges with the U.S. Securities and Exchange Commission.
Furthermore, the exchange has formed a partnership with UK football club Tottenham Hotspur. As the football club’s crypto and Web3 partner, Kraken will serve as the club’s official sleeve partner for both its men’s and women’s teams.
In July, Kraken announced the expansion of its Custody services for institutional clients in the UK and Australia. The US-based company is also eyeing European Union, Switzerland, Cayman Islands, and British Virgin Islands in the near future.
Kraken is also actively looking to broaden its reach in Europe. Back in May 2024, Kraken entered the German market, partnering with local asset manager DLT Finance.
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