VK Shuts Down NFT Marketplace Amid $1.1 Billion Loss
VK, Russia’s top social media giant, will close its NFT marketplace, VK NFT Hub, on April 15, 2025, following substantial financial losses in 2024. This move signals a major step back from Russia’s digital asset goals and mirrors a worldwide slump in the NFT industry.
VK Abandons NFT Venture After $1.1 Billion Deficit
VK disclosed a staggering net loss of 94.9 billion rubles—around $1.1 billion—in 2024, almost three times higher than the previous year’s shortfall. To address this financial burden, the company aims to secure $1.36 billion through a fresh stock offering to restructure its mounting debt.
Due to these struggles, VK advises users to move their NFTs to external wallets before the April 15 cutoff. Failure to do so could lock them out of their digital assets forever. The neon diamond icons adorning user avatars—once proud markers of NFT ownership—will vanish for good after the closure.
VK NFT Users Lose Profile Distinction
On VK, NFTs mainly functioned as digital flair, letting users enhance their avatars with standout symbols. However, when VK NFT Hub shuts down, buyers who invested in NFTs for this feature will see all traces of ownership disappear from their profiles.
Although VK intends to maintain its NFT community page, it offers no clear plans for re-entering the NFT or digital asset arena. This ambiguity leaves many users questioning VK’s dedication to blockchain endeavors moving forward.
Global NFT Sector Grapples with Widespread Decline
VK’s withdrawal from NFTs aligns with a larger global pattern. Recently, big names like X2Y2—formerly the fourth-largest NFT marketplace—and Bybit NFT have also ceased operations. South Korea’s LG has similarly axed its LG Art Lab NFT project.
Dune Analytics reveals that NFT trading volumes have crashed over 90% since their 2021 high. Even elite collections like Bored Ape Yacht Club (BAYC) and CryptoPunks have taken a beating. For example, Justin Bieber’s $1.3 million BAYC NFT now holds a value below $25,000.
NFT Collapse Echoes Dot-Com Bust
This steep fall in NFT activity mirrors the dot-com bubble of the early 2000s. During that era, speculative fervor fueled countless tech startups, only for many to crumble when fundamentals faltered. Today, the NFT market often thrives on buzz but struggles to deliver lasting viability.
Recent data highlights the crisis: 96% of top NFTs from 2022 now carry no value, exposing fundamental flaws in the industry.
Conclusion
VK’s choice to end its NFT marketplace transcends one company’s woes. It reflects a broader global pullback from risky digital pursuits. With more platforms bowing out, the NFT world faces tough questions about its longevity, worth, and prospects.
Looking ahead, NFTs might endure only if future platforms prioritize practical use, clarity, and real value for users—steering clear of short-lived hype.
