Kraken NFT Marketplace to Shut Down on November 27, Citing Shift in Strategy

In an email to clients, Kraken confirmed that the platform will enter a withdrawal-only phase on November 27. Users will have a three-month window to transfer their NFTs before the marketplace shuts down completely.

Kraken, a major cryptocurrency exchange, announced the closure of its NFT marketplace on November 27. The platform will enter a withdrawal-only phase, giving users a three-month window to transfer their NFTs before the marketplace shuts down completely.

Kraken’s NFT marketplace launched in June 2023 after a beta testing phase. The platform featured over 250 collections and notably exempted buyers and sellers from gas fees. However, its closure highlights some of the challenges faced by the NFT sector.

According to Cointelegraph citing a DappRadar report, the NFT market experienced a significant decline in 2024. Trading volumes fell to USD 471 million in August, marking a 16% drop from July and a stark contrast to the USD 12.6 billion recorded in the first quarter of 2022. Despite a slight recovery in November, activity remained far below peak levels.

Kraken’s marketplace also faced competition from specialized platforms such as OpenSea and Blur. OpenSea’s trading volume, for comparison, dropped to USD 110.5 million in August, a 27% decline from the previous month. The NFT sector has additionally faced regulatory uncertainty. In late August, the Securities and Exchange Commission (SEC) issued a Wells notice to OpenSea, suggesting potential enforcement actions against collectible tokens.

Kraken itself has been under regulatory scrutiny, including ongoing legal proceedings about whether certain tokens traded on its platform constitute securities under the Howey test. While it remains unclear if regulatory concerns influenced Kraken’s decision, the lack of clear guidelines for NFTs adds to the challenges in the space.