Kraken to Close NFT Marketplace by February 2025 to Focus on New Products
Kraken is shutting down its NFT marketplace on February 27, 2025. Launched just over 2 years ago, the marketplace never really took off in a cooling NFT market.
A Kraken spokesperson confirmed the move is part of a broader strategy to focus on new products and services.
“Clients have been notified and our team will support them as they move their NFTs to Kraken Wallet or other self-custodial options,” the spokesperson said. Since November 27, 2024 the marketplace has been in withdrawal only mode, you can no longer list, buy, bid or sell NFTs. You need to withdraw your NFTs before the final shutdown date in February.
This is following the previous restructuring of Kraken where they cut 15% of their workforce (around 400 employees) and appointed a new co-CEO.
NFT Market Faces Persistent Challenges
The NFT market has never recovered from 2021. Big sales like Beeple’s Everydays: The First 5000 Days which sold for $69 million at Christie’s created a huge demand during the boom. In January 2022 NFT trading volumes reached $17 billion, by September of the same year volumes had dropped by 97%.
This is in line with the overall decline of the cryptocurrency market and the waning interest in NFTs as an investment asset. By 2024 many collections were trading at a fraction of their value, the market had shifted towards practical use cases within digital ecosystems.
Kraken’s decision to exit the NFT space is in line with this trend. They want to focus on products with broader market potential rather than doubling down on an industry with long term headwinds.
Kraken’s Future Strategy and Industry Outlook
As Kraken closes its NFT marketplace they are doubling down on innovation. Earlier this year they tried to raise $100 million to support an IPO but the round is still open.
The company is pivoting to new products as they navigate the challenges in the cryptocurrency industry. Recent layoffs (15% of the workforce, including senior executives) shows they need to streamline.
Key points from Kraken’s announcement:
Final Withdrawal Deadline: Users must withdraw NFTs by February 27, 2025.
Restricted Marketplace Access: As of November 27, users can only transfer NFTs to wallets.
Focus on Innovation: Resources are being redirected to unannounced products and services.
While the NFT market remains uncertain, Kraken’s proactive approach to reallocating resources highlights its commitment to long-term growth.
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