Kraken has announced the shutdown of its NFT marketplace to redirect resources toward new initiatives. 

The marketplace will transition into withdrawal-only mode on November 27, 2024, and fully cease operations on February 27, 2025, according to an email from Kraken seen by Coin Insider Daily. 

Kraken explained that the closure will allow the company to focus on undisclosed “new products and services.” Users are urged to withdraw their NFTs to self-custodial wallets or Kraken Wallets before the February deadline. 

Kraken’s support team will assist users in the transition.

The downfall of NFTs 

NFTs, or nonfungible tokens, are unique blockchain assets that verify ownership of digital or physical items. While they gained popularity during the crypto boom, the market has struggled to recover since the 2022 bear market. 

Kraken’s NFT marketplace, launched in beta in November 2022, aimed to tap into the growing interest in NFTs at the time. However, market conditions and shifting priorities have led to the decision to wind down operations.