Kraken Shuts Down NFT Marketplace Amid Market Decline and Regulatory Pressure

Kraken has announced the closure of its NFT marketplace, which launched just over a year ago.
Starting November 27, the platform will enter a withdrawal-only mode, allowing users a three-month period to move their NFTs before shutting down completely.
Kraken stated that the closure is part of a strategic shift to focus on new products and services. Users have been informed and will receive assistance in transferring their assets to Kraken Wallet or other self-custodial wallets.
The closure comes amid a downturn in the NFT market. Trading volumes have dropped significantly in 2024, with a 16% decline in August alone, and a sharp decrease in overall market activity compared to 2022.
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Competition from established platforms like OpenSea and Blur has intensified, while regulatory pressures have added further challenges, with the SEC targeting platforms like OpenSea over potential violations related to collectible tokens.
Kraken, also facing legal battles with the SEC, has yet to clarify whether these issues contributed to the decision to close its NFT marketplace.