Kraken, a leading cryptocurrency exchange, has announced the closure of its NFT marketplace, which was launched in 2022. Users are required to withdraw their NFTs by February 27, 2025, as the platform will no longer support trading or custody services after this date. The decision comes as Kraken plans to redirect its resources toward developing new products and services, some of which remain undisclosed.

Transition to Withdrawal-Only Mode

Starting November 27, 2024, Kraken’s NFT marketplace entered a withdrawal-only mode. While users can no longer list, buy, or sell NFTs, they can still transfer their digital assets to self-custodial wallets or their Kraken Wallet. Kraken has assured users that its team will assist with the transition.

This move follows a recent restructuring at Kraken, where the company reduced its workforce by 15%, affecting 400 employees. Key executives, including Chief Operating Officer Gilles BianRosa and Chief Technology Officer Vishnu Patankar, were part of the layoffs. Kraken also appointed a new co-CEO to guide the company’s strategic direction.

Earlier in 2024, Kraken sought to raise $100 million in funding, positioning itself for a potential initial public offering (IPO). However, the funding round remains incomplete.

The Changing Landscape of the NFT Market

The NFT market experienced a meteoric rise in 2021, with record-breaking sales such as Beeple’s Everydays: The First 5000 Days fetching $69 million. However, the hype quickly faded, and trading volumes plummeted by 97% from their peak of $17 billion in January 2022 to September of the same year.

By 2024, the market had shifted focus, emphasizing practical applications of NFTs within digital ecosystems rather than speculative trading. Many collections are now trading at significantly reduced values compared to their 2021 highs.

Kraken has advised its users to withdraw their NFTs before the February 27, 2025, deadline. After this date, the marketplace and its custody services will no longer be accessible.

While the NFT marketplace is closing, Kraken’s pivot signals a focus on new opportunities in the evolving crypto landscape. The company’s next steps remain closely watched by both users and industry observers.