Bybit Shuts Down NFT Marketplace Amid Market Decline and Security Concerns

Crypto exchange Bybit is shutting down its NFT marketplace, joining a growing list of companies withdrawing from the shrinking NFT business. In an official announcement on April 1st, Bybit announced that it would be shutting down its inscription platform and IDO pages in addition to its NFT marketplace.

Shutdown from April 8th – users must act

The affected pages will no longer be accessible by April 8th at the latest. Bybit is urging users to secure their assets until then.

According to Bybit, the reason for this is a comprehensive restructuring of its offering – but observers believe there are even deeper reasons.

Hacker attack triggers NFT demand collapse

Just last February, Bybit was the target of a massive hack in which, according to the FBI, around $1.4 billion was stolen – allegedly by North Korean cybercriminals.

But the attack hits an already weak segment: According to industry data, trading volume on NFT marketplaces has plummeted by around 90% since 2021.

Not only Bybit is withdrawing

Bybit isn’t alone in taking this step. In the weeks prior, X2Y2, Kraken, and RTFKT, which was acquired by Nike, had already abandoned their NFT activities. LG will shut down its NFT platform Art Lab in June.

X2Y2 openly commented on the withdrawal: “Network effects determine success or failure—after three years of fierce competition, we’re done.” The company plans to focus on AI in the future.

Prices of top NFTs in free fall

A look at current NFT floor prices underscores the plight: The cheapest CryptoPunks are currently trading for 42.59 ETH—a drop of almost 66% from the all-time high of 125 ETH in August 2021. The Bored Ape Yacht Club NFTs have even lost 90% of their value and are currently trading at around 15 ETH.

Conclusion: NFTs at a turning point

What was once celebrated as a digital revolution in the art and collectibles market continues to lose relevance. The closure of the Bybit marketplace is further evidence that the NFT boom may be over for good—at least in its current form.

__

(Featured image by Markus Winkler via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in BLOCK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us