{"id":101489,"date":"2024-11-26T16:34:18","date_gmt":"2024-11-26T20:34:18","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=101489"},"modified":"2024-11-26T16:52:53","modified_gmt":"2024-11-26T20:52:53","slug":"kraken-to-shutdown-nft-marketplace","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/kraken-to-shutdown-nft-marketplace\/","title":{"rendered":"Kraken to Shutdown NFT Marketplace"},"content":{"rendered":"\n

Kraken cryptocurrency exchange<\/a> will discontinue its non-fungible token (NFT) marketplace just over a year after its inception on Nov. 27.<\/p>\n\n\n\n

\"Kraken
Kraken to Shutdown NFT Marketplace<\/figcaption><\/figure>\n\n\n\n

The NFT marketplace will transition to withdrawal-only mode on Nov. 27, as indicated in an email sent to clients. This transition will commence a three-month withdrawal period before the marketplace's complete closure. Kraken stated that the relocation will allocate resources to new products and services.<\/p>\n\n\n\n

In a statement, a Kraken spokesperson verified the platform's discontinuation:<\/p>\n\n\n\n

\n

\u201cWe\u2019ve made the decision to close our NFT marketplace so we can shift more resources into new products and services, including unannounced initiatives in-development. 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.\u201d<\/p>\n<\/blockquote>\n\n\n\n

After several months of beta testing, the exchange completed the marketplace's full rollout in June 2023. Kraken introduced more than 250 NFT collections at its inception without imposing gas fees on buyers or vendors during transactions.<\/p>\n\n\n\n

Kraken announced its decisions as the NFT market experiences a downward trajectory in 2024. The trading volume of NFTs in August reached a yearly low of $471 million, a 16% decrease from July, according to an industry report by DappRadar. By the first quarter of 2024, the trading activity of NFTs <\/a>had increased from $12.6 billion in the same period of 2022 to $3.9 billion.<\/p>\n\n\n\n

In addition to the market downturn, Kraken's platform encountered competition from niche marketplaces, including Blur and OpenSea. <\/p>\n\n\n\n

The trading volume at OpenSea closed at $110.5 million in August, a 27% decrease from the previous month. Despite the market's recovery in November, it remains behind its 2022 apex.<\/p>\n\n\n\n

\"NFTs
NFTs trading activity in August. Source:\u00a0DappRadar<\/em>\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a><\/figcaption><\/figure>\n\n\n\n

In late August, the Securities and Exchange Commission (SEC) issued a Wells notice to OpenSea, which hinted at an imminent enforcement action regarding collectible tokens. This was another adverse development in the NFT sector.<\/p>\n\n\n\n

The agency has previously targeted Kraken. The organization is currently embroiled in a legal dispute regarding whether the crypto tokens traded and sold on its platform qualify as investment contracts under the Howey test and are subject to securities laws. <\/p>\n\n\n\n

It is still being determined whether the closure of the NFT marketplace is associated with potential additional legal complications with US regulators<\/a>, as such tokens continue to lack explicit regulations.<\/p>\n","protected":false},"excerpt":{"rendered":"

Kraken cryptocurrency exchange will discontinue its non-fungible token (NFT) marketplace just over a year after its inception on Nov. 27. The NFT marketplace will transition to withdrawal-only mode on Nov. 27, as indicated in an email sent to clients. This transition will commence a three-month withdrawal period before the marketplace’s complete closure. Kraken stated that […]<\/p>\n","protected":false},"author":12,"featured_media":78989,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[62],"tags":[1406,1671,1637],"class_list":["post-101489","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nft-news","tag-crypto-exchange","tag-kraken","tag-nft-marketplace"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/05\/Kraken-Denies-Plans-to-Delist-Tether-in-Europe.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/101489","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=101489"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/101489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/78989"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=101489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=101489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=101489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}