Kraken, a large US-based cryptocurrency exchange, is shuttering its NFT marketplace after launching the service about two years ago. Kraken announced the closure in late November. Kraken users have until early next year to transfer their NFTs from the marketplace into a crypto wallet.
"We are making this change so we can shift more resources into new products and services," the exchange posted on its FAQ page about the marketplace closure. "This change will help us enhance our offerings and deliver more value to our clients in the evolving digital asset landscape."
Starting on Nov. 27, the NFT marketplace changed to only allow withdrawals. If you use Kraken, you can no longer list, purchase, bid on, or sell NFTs on the exchange.
What's happening with Kraken?
The exchange posted on its site that it was looking to shift its resources to new products and services. Earlier in November, Reuters reported that Kraken joined a group of cryptocurrency and financial technology companies to launch a global stablecoin pegged to the US dollar.
Late last year, the SEC charged Kraken with allegedly operating as an unregistered securities exchange. Kraken disputes the charges, and the case has yet to be resolved.
Kraken's NFT marketplace closure comes as the prices for some cryptocurrencies have risen in recent weeks. The price of bitcoin, the most well-known cryptocurrency, topped $100,000 on Dec. 5, a sizable shift from when it traded at $16,800 in late December 2022, after the market for cryptocurrency fell sharply during the end of 2021 and into 2022.
Despite the rise in cryptocurrency prices this year, NFTs -- digital images minted on a blockchain such as ethereum or solana that can be bought and sold for crypto -- have not seen the same massive spikes. Only a couple years ago, many popular NFTs saw a heavy drop in price.
What should you do if you have NFTs on Kraken?
If you have nonfungible tokens listed on the Kraken marketplace, you'll need to transfer them to a self-custody wallet or a Kraken wallet by Feb. 27, 2025. After the deadline, you won't be able to access your NFTs on Kraken's marketplace.
If you don't have your own self-custody crypto wallet, the exchange recommends downloading their version of a crypto wallet, a Kraken wallet. The company website has a page that explains how to transfer the NFT into it.
Kraken's FAQ page on its NFT marketplace closure says that while the exchange will not charge fees to transfer the NFTs from the marketplace, network fees from the NFT's associated blockchain may occur with the transfer.
Should I invest in NFTs and cryptocurrency?
Both NFTs and cryptocurrency can be highly volatile, often experiencing large price swings in short amounts of time. So, NFTs and cryptocurrency can be considered a high-risk investment. Investment experts stress never to invest more than you're willing to lose.
Some experts say that while investing in digital assets like crypto can be profitable at times, it's rarely a safe bet. It's better to consider NFTs and crypto as one of many investment vehicles for your wealth-building strategy rather than relying solely on it.
Kraken did not immediately respond to a request for comment on this story.
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