Kremlin-backed social community VK will shut its NFT platform this month, following a 12 months of deepening losses and a deliberate $1.36 billion share problem to cut back debt.
Russian social media firm VK plans to close down its market for non-fungible tokens, VK NFT Hub, on April 15, the crew mentioned, ending a service that was launched in December 2022. In a public announcement, customers had been informed to switch their tokens to exterior wallets earlier than the deadline.
After April 15, the particular visible markers on VK related to NFTs — small neon diamonds that appeared on avatars — might be eliminated, leaving customers who bought NFTs for this function with nothing. The NFT crew added that current content material within the VK NFT group will stay, although it’s unclear whether or not VK plans to return to NFTs or digital belongings sooner or later.
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The closure comes as VK faces monetary stress as the corporate’s internet loss practically tripled in 2024 to 94.9 billion roubles (round $1.1 billion), up from 34.3 billion roubles in 2023. Amid declining monetary well being, the corporate revealed plans to lift as much as 115 billion roubles by means of a brand new share issuance to cut back debt.
It’s understood that the corporate will direct the obtained funds to reducing its debt burden. As crypto.information reported earlier, March marked a turning level, with a sequence of market shutdowns intensifying the scenario. These included South Korean tech big LG shutting down its LG Artwork Lab, in addition to the closures of X2Y2, and Bybit’s NFT market, amongst others.
Learn extra: NFT gross sales slip 5.3% to $100.9m, Bitcoin NFT gross sales drop 30%
