Kraken, a big name in crypto, is shutting down its NFT marketplace in February 2025. This surprise move has many wondering about the future of NFTs.
The Shutdown
The marketplace will start winding down on November 27th, with features like bidding and selling disabled. Users will have until February 27th, 2025, to withdraw their funds. This closure comes almost two years after the marketplace launched.
Kraken’s Reasoning
Kraken says this tough decision allows them to focus on developing new products and services. They’ve reportedly informed customers and are offering support to help transfer assets. This announcement follows a 15% workforce reduction and the appointment of a new co-CEO in October.
Is the NFT Boom Over?
Analysts point to a significant downturn in the NFT market this year, with some months seeing a 50% decline. One expert suggests that a lack of demand and originality is contributing to the slowdown. Even big names like Mark Cuban have been selling off their NFTs.
However, some remain optimistic, predicting the market could still reach $2.8 billion by 2028 and 14.67 million users this year. So, while Kraken’s move is a significant blow, the future of NFTs remains uncertain.
