Kraken is shutting down its NFT marketplace just over a year after its launch. Starting November 27, the marketplace will enter withdrawal-only mode, allowing clients three months to withdraw their assets before it completely shuts down. This decision comes as Kraken seeks to reallocate resources to new products and services, aiming to shift focus to unannounced initiatives in development. Launched in June 2023, the marketplace originally offered over 250 NFT collections and did not impose gas fees on transactions. However, the NFT market has been experiencing a decline, with trading volume hitting a yearly low in August 2024, down 16% from the previous month. Competing platforms like OpenSea and Blur have also seen reduced trading activity. Additionally, developments regarding regulatory scrutiny from the SEC may impact Kraken, as the agency has previously raised concerns about whether crypto tokens constitute investment contracts. The future of Kraken's NFT offerings remains uncertain amidst these challenges.

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