Bybit Becomes Latest Crypto Firm to Shutter NFT Marketplace

Bybit is pulling the plug on its NFT marketplace, the latest in a string of crypto firms abandoning the once-hyped digital asset sector, as the exchange continues to grapple with the fallout from a hack five weeks ago.

The crypto exchange said in an April 1 statement that it will discontinue operations for its NFT Marketplace, Inscription Marketplace, and IDO product pages as part of a broader effort to streamline its offerings. 

The platform will become inaccessible on April 8, and users have been advised to manage their assets before the deadline, Bybit said.

The shutdown follows a hack of the exchange in February for $1.4 billion, the largest crypto theft to date. The FBI attributed the attack to North Korea.

Bybit is not alone in shuttering its NFT marketplace following similar exits by other major players in the industry. Earlier this week, marketplace X2Y2 said it too would wind down operations, having processed $5.6 billion in trading volume over its lifetime. 

“The 90% shrinkage of NFT trading volume from its peak in 2021 is for sure one of the many reasons,” X2Y2 said in a statement. “But most importantly, Marketplaces live or die by network effects. We fought tooth and nail to be #1, but after three years, it's clear it's time to move on.” 

X2Y2 added that it is pivoting to AI. 

Kraken also shut down its own NFT marketplace on February 27, citing a reallocation of resources toward “new products and services.” 

Nike-owned RTFKT ceased operations in January after steep declines in the value of its NFT collections. 

Even LG, the television giant, plans to close its NFT platform, LG Art Lab, on June 17, saying it’s “the right time to shift our focus and explore new opportunities.”

Once touted as a revolutionary leap in digital art and ownership, the NFT market has struggled to recover from the crypto winter. Floor prices of once-prestigious collections have nosedived.

The cheapest CryptoPunks now trade at 42.59 ETH, down nearly 66% from their August 2021 high of 125 ETH. Bored Ape Yacht Club NFTs have fared even worse, sinking 90% from a May 2022 peak of 153.7 ETH to just 15.35 ETH today.

Edited by Sebastian Sinclair