Fallout From Hack and Market Downturn
Crypto exchange Bybit has announced the closure of its NFT Marketplace, Inscription Marketplace, and IDO pages, effective April 8. The decision follows a $1.4 billion hack attributed to North Korea and comes amid a broader contraction of the NFT market.
Users Advised to Withdraw
Bybit has advised users to manage their assets before the April 8 deadline, after which access to the NFT platform will be cut off. The move is part of a broader realignment of its business strategy, which the company says is aimed at focusing on more viable services.
Part of a Larger Trend
Bybit’s closure mirrors similar exits by other platforms. Ethereum NFT marketplace X2Y2 will shut down its trading interface by the end of April, citing a 90% decline in trading volume since the market’s 2021 peak. Kraken shuttered its own NFT marketplace in February, and Nike’s RTFKT brand ceased operations in January.
The End of an Era?
Once celebrated as a revolutionary innovation, NFTs have seen valuations collapse. CryptoPunks and Bored Ape Yacht Club NFTs are now trading 60% to 90% below their all-time highs. LG will also shut down its Art Lab NFT platform in June. The NFT space is undergoing a major reset, with some companies shifting to other sectors like artificial intelligence.
