Key Takeaways:
A top social media service ends its digital collectible marketplace amid fiscal challenges. The decision reflects a broader pullback from speculative digital asset ventures. Users are advised to relocate their assets to alternative storage options.VK, one of Russia’s largest social media platforms, announced that it would shut down its NFT marketplace, VK NFT Hub, on April 15, due to mounting financial losses.
The move follows VK’s 2024 net loss of 94.9 billion rubles (around $1.1 billion), nearly triple its 2023 losses of 34.3 billion rubles.
VK Financial Struggles and the Collapse of Its NFT Marketplace
To reduce its debt load, VK plans to issue $1.36 billion in new shares, a decision made amid deepening financial setbacks.
The company has urged users to move their NFTs to external wallets before April 15 to avoid losing access to their assets.
After that date, the platform will remove the neon diamond icons on user avatars that once indicated NFT ownership.
Users who bought NFTs mainly for avatar integration will lose their visual indicators on VK.
While the VK NFT community page will remain accessible, the company has not confirmed whether it plans to return to the NFT or digital asset space in the future.
VK’s exit comes during a downturn in the NFT sector, reflecting broader trends across the industry.
Recently, NFT marketplace X2Y2 and crypto exchange Bybit also announced closures of their respective NFT platforms.
X2Y2, formerly the fourth-largest NFT platform by trading volume, will cease operations on April 30.
Bybit closed its NFT marketplace earlier this month, on April 8.
NFT Market Decline Mirrors Dot-Com Crash Signs
NFT activity peaked in 2021, driven by celebrity endorsements and speculative investments.
According to industry data, NFT trading volumes have dropped more than 90% since their all-time highs.
X2Y2, for example, recorded just $53.5 million in trading volume over the past year—down from a peak of $5.6 billion.
High-profile sales, such as Beeple’s $69 million NFT at Christie’s, drew global attention to the space.
This momentum led brands, artists, musicians, and sports organizations to create their own digital assets and collectibles.
Yet, much like the dot-com bubble of the early 2000s, the NFT market proved unsustainable in the long run, fueled more by speculation than lasting value.
Collections like CryptoPunks and Bored Ape Yacht Club (BAYC) saw record prices during the boom.
However, many of these assets have since collapsed in value.
For instance, Justin Bieber bought Bored Ape #3001 in January 2022 for 500 ETH (around $1.3 million at the time).
It is now worth only 13.89 ETH—roughly $24,679 with ETH trading at $1,561.
Frequently Asked Questions (FAQs)
The shutdown shows digital asset platforms must build sustainable operations and ensure clear asset protection. It firmly warns that relying solely on market hype leaves platforms vulnerable to abrupt exits.
The closure could prompt a redesign of market models that focus on secure, transparent digital commerce. Stakeholders may adopt new criteria to evaluate underlying asset value rather than transient market trends.
New tech standards can boost security and compatibility. As providers reevaluate operations, updated protocols may offer clearer benchmarks for verifying digital assets and managing custody efficiently.
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