Crypto Exchange Kraken Shuts Down NFT Marketplace
Crypto exchange Kraken is shutting down its NFT marketplace nearly two years after the platform launched, saying it is shifting more resources into new products and services.
“Customers have been notified of the changes and our team will support them in moving their NFTs to their Kraken Wallet or a self-custodial wallet of their choice,” said a statement from a Kraken spokesperson.
NFTs, or non-fungible tokens that serve as blockchain certificates that authenticate ownership of a particular asset, haven’t recovered from the 2022 crypto bear market as strongly as major tokens like Bitcoin. But like the rest of the market, they have recovered 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, but is still down 81 percent from its April 2022 high.
Kraken’s move to shutter its NFT marketplace comes amid broader shakeups at the company over the past month — including the appointment of a new CFO and co-CEO, along with cutting 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 enable trading, borrowing and lending of tokens without intermediaries. Ink will use similar technology to Coinbase Global Inc.’s DeFi platform, known as Base.
Kraken, one of the oldest crypto exchanges, has been expanding into new product areas and markets as it continues to consider a possible IPO. Earlier this year, Bloomberg reported that the privately held company was considering a final round of financing ahead of an initial public offering.
In late 2021, Kraken founder Jesse Powell said in an interview that the exchange was working on an NFT marketplace that could appeal to customers who want to do more than just collect digital art, such as offering custodial services and even allowing customers to Using NFTs. as collateral against which to borrow money. The platform was opened to the public in December 2022.
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