Bybit Shuts Down Its NFT Marketplace As Crypto Sector Struggles To Recover

Cryptocurrency exchange Bybit announced Tuesday it will close its non-fungible token (NFT) marketplace on April 8 as the company refocuses on its core trading services.

The decision comes after a February security breach that cost the company $1.46 billion in stolen digital assets, which is believed to be the biggest known heist of all time.

Bybit has instructed users to transfer their NFTs to external wallets before the closure date to avoid potential losses.

The move comes during a broader cooling of the NFT market, with trading volumes declining significantly across major platforms in recent months.

However, many in the crypto industry are still bullish on NFTs.

Canary Capital filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a new NFT-focused exchange-traded fund (ETF) in late March.

The ETF would invest directly in Pudgy Penguins NFTs and PENGU, the project’s utility token, and it would also hold other crypto assets, like Ethereum (ETH) and Solana (SOL), that “are necessary or incidental to the purchase, sale and transfer” of those tokens, per the filing.

In December, Raoul Pal said that NFTs might flourish due to fiat currency debasement and the growing popularity of digital assets among younger generations.

Despite the NFT marketplace closure, Bybit reaffirmed its commitment to blockchain technology advancement, promising enhanced security protocols following the February breach.

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