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News

Kraken NFT Marketplace Halted After 2 Years As Exchange Focuses On New Products

November 27, 2024 - Around 2 mins mins to read

Key Points:

  • The Kraken NFT marketplace will be discontinued to focus on new products and services.
  • The company is also undergoing significant changes, including plans to launch a blockchain called Ink for DeFi in 2025.
According to Bloomberg, Kraken, among the earliest cryptocurrency exchanges to be established, announced on Tuesday that it would end the Kraken NFT marketplace nearly two years after its launch.
Kraken NFT Marketplace Halted After 2 Years As Exchange Focuses On New Products

Read more: Kraken Lightning Network Is Now Suspended Support For German Client   

Kraken NFT Marketplace Disabled to Focus on New Innovations

The company explained that this would enable it to dedicate additional resources to developing 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,” a Kraken spokesperson confirmed.

The move comes at a time of intense restructuring for the San Francisco Bay Area-based company. In the last month alone, Kraken hired a new CFO and co-CEO while laying off around 15% of its staff.

The exchange also announced the unveiling of a blockchain platform named Ink in early 2025. Ink is intended for decentralized applications and will allow direct peer-to-peer trading, borrowing, and lending of tokens using similar technology underlying Coinbase’s Base.

Regulatory Pressures Add Complexity to Kraken’s Strategy

The decision also comes amidst increased regulatory scrutiny in the crypto and NFT domains. In August, the U.S. Securities and Exchange Commission gave OpenSea a Wells notice to indicate possible enforcement action against collectable tokens.

Kraken has also faced legal challenges from the SEC, including disputes over whether certain crypto tokens on its platform qualify as securities under U.S. law. However, it is not clear whether these legal pressures influenced the exchange’s decision to shut down its NFT marketplace.

The Kraken NFT marketplace launched in December 2022 with the premise of catering to more than digital art collections with custody services and even NFT-backed loans. In any case, although the marketplace is winding up operations, the company still seeks further avenues for growth, such as an IPO. At the beginning of the year, Kraken weighed an ultimate funding round before its public market entrance.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Ink

Kraken

Kraken NFT Marketplace

NFT

SEC

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.