Russian social network VK closes NFT marketplace as net loss almost triples

Kremlin-Stunder Social Community VK will shut its NFT platform this month, after a yr of deepening losses and a deliberate share downside of $ 1.36 billion to cut back money owed.

Russian social media firm VK is planning to shut his market for non-fungal tokens, VK NFT Hub, on April 15, the group mentioned, put an finish to a service launched in December 2022. public announcementCustomers had been advised to switch their tokens to exterior portfolios earlier than the deadline.

After April 15, the particular visible markers at VK related to NFTs – small neon diamonds that appeared on Avatars – can be eliminated, in order that customers who’ve purchased NFTs for this operate with nothing. The NFT group added that present content material within the UK NFT group will stay, though it’s unclear whether or not VK is planning to return to NFTS or Digital Belongings sooner or later.

The closure is as a result of VK is confronted with monetary strain as a result of the online lack of the corporate virtually tripled in 2024 to 94.9 billion rubles (about $ 1.1 billion), a rise of 34.3 billion rubles in 2023. The corporate plans to cut back the fault within the midst of a brand new inventory.

It’s understood that the corporate will ship the funds obtained to decrease its debt. As Crypto.information reported earlier, March marked a turning level, with a sequence of market closures that intensify the state of affairs. These embrace the South Korean Tech large LG who closed its LG Artwork Lab, in addition to the closures of X2Y2 and the NFT market of Bybit, amongst different issues.