Kraken’s move to shut down its NFT marketplace comes amid broader internal shakeups.
Kraken had opened the platform to the public in December 2022
Photo Credit: Reuters
The crypto exchange Kraken is shutting down its NFT marketplace almost two years after the platform was launched, saying it's shifting more resources into new products and services.
“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,” according to a statement from a Kraken spokesperson.
NFTs, or nonfungible tokens that serve as blockchain certificates that authenticate ownership of a particular asset, haven't rebounded from the crypto bear market of 2022 as strongly as major tokens such as Bitcoin. However, like the rest of the market, they have rallied since pro-crypto candidate Donald Trump won the presidential election three weeks ago. The Bitwise Blue-Chip NFT Collections Index is up 90 percent since the day before the election, yet it is still down 81 percent from a high in April 2022.
Kraken's move to shut down its NFT marketplace comes amid broader shakeups at the company over the last month — which includes appointing a new CFO and co-CEO, along with reducing about 15 percent of its workforce. The San Francisco Bay-area-based exchange also recently announced plans to launch a blockchain called Ink early next year for decentralized applications that allow for trading, borrowing and lending of tokens without intermediaries. Ink will use similar technology to Coinbase Global Inc.'s DeFi platform known as Base.
One of the oldest crypto exchanges, Kraken has been expanding into new product areas and markets as it continues to mull a potential initial public offering. Earlier this year, Bloomberg reported the private firm was considering a final funding round ahead of an IPO.
In late 2021, Kraken founder Jesse Powell said in an interview that the exchange was working on a NFT marketplace that could appeal to customers who want to do more than just collect digital art, such as providing custody services and even allowing customers to use their NFTs as collateral to borrow funds against. The platform was opened to the public in December 2022.
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