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

Kremlin-backed social community VK will shut its NFT platform this month, following a yr of deepening losses and a deliberate $1.36 billion share challenge 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 stated, ending a service that was launched in December 2022. In a public announcement, customers have 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 — will likely be eliminated, leaving customers who bought NFTs for this characteristic with nothing. The NFT crew added that present 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 web loss almost 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 boost as much as 115 billion roubles via a brand new share issuance to cut back debt.

It’s understood that the corporate will direct the acquired funds to reducing its debt burden. As crypto.information reported earlier, March marked a turning level, with a collection of market shutdowns intensifying the state of affairs. These included South Korean tech large 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%