Kraken Shuts Down Its NFT Marketplace

Kraken Shuts Down Its NFT Marketplace – What Went Wrong?

Updated: 27 November 2024

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Kraken, a centralized cryptocurrency exchange platform that allows users to buy, sell, and trade crypto, has announced plans to close its non-fungible token marketplace. This harsh decision is part of a broader strategic measure aimed at redirecting resources toward new and more promising initiatives within its ecosystem. In this article, we shall assess the fate of NFT holders after closure.

Kraken Is Shuttering Its NFT Marketplace

In an email announcement sent to customers on November 26, Kraken confirmed plans to shut down its non-fungible token market platform. Starting Today, November 27, the NFT marketplace will enter withdrawal-only mode, initiating a three-month period to allow users to transfer their NFTs to external wallets before the definitive deactivation. Kraken’s NFT market platform will completely close in February 2025.

BREAKING: Kraken to shutter its NFT marketplace pic.twitter.com/5Wa4ZpTOxz

— Bryptos (@Bryptos_) November 26, 2024

Kraken, a centralized exchange headquartered in San Francisco, launched its NFT marketplace in June 2023. The marketplace offers a selection of more than 250 unique NFT collections. Kraken NFT marketplace supports several blockchain networks, including Ethereum, Solana, and Polygon. It also accepts fiat, becoming a user-friendly market platform for non-crypto-native traders.

Kraken’s exit from the NFT market shows its intention to focus on sectors with greater growth potential within the crypto market. For the past year, the Kraken NFT marketplace has undergone several market challenges due to a general NFT market decline, reduced interest, and intense competition from niche players like OpenSea and Blur. Kraken anticipates maximizing its services in the crypto market, which seems to be a much less competitive and ever-evolving landscape.

Will Kraken Closure Affect The NFT Craze?

The NFT market suffered a significant downturn in the past several months, with some critics even pronouncing the sector dead already. Fortunately, the global non-fungible token sector has showcased strong resilience and is now experiencing a resurgence in Q4 2024. In that context, this market has come too far, and it’s unlikely to be impacted by Kraken’s NFT market closure.

Moreover, crypto market regulation has also played a significant role in the decline of the NFT sector. Earlier this year, the United States Securities and Exchange Commission intensified the scrutiny on collectible tokens, sending a Wells notice to OpenSea’s NFT marketplace indicating that NFTs on its platform were illegal securities. Now that crypto-friendly Donald Trump has been re-elected US president, the crypto community expects him to reshape the regulatory framework for NFTs.