Russian Social Media Company VK to Shut Down its NFT Marketplace Over Recorded Losses

​VK, one of Russia's largest social media platforms, has announced the closure of its NFT marketplace, VK NFT Hub, effective April 15, 2025, due to significant financial losses. The company reported a net loss of 94.9 billion rubles (approximately $1.1 billion) in 2024, nearly tripling its 2023 losses of 34.3 billion rubles. In response to these financial challenges, VK plans to issue $1.36 billion in new shares to reduce its debt load.​

Users are advised to transfer their NFTs to external wallets before the April 15 deadline to retain access to their digital assets. Post-closure, VK will remove the neon diamond icons on user avatars that signified NFT ownership, affecting users who utilized NFTs for avatar integration. While the VK NFT community page will remain accessible, the company has not confirmed any future plans regarding re-entering the NFT or digital asset space.​

This development aligns with a broader downturn in the NFT sector, reflecting significant declines in trading volumes and platform closures. For instance, NFT marketplace X2Y2 and crypto exchange Bybit have also announced the shutdown of their respective NFT platforms. X2Y2, previously the fourth-largest NFT platform by trading volume, will cease operations on April 30, while Bybit closed its NFT marketplace on April 8. These closures highlight the challenges faced by NFT platforms amid shifting market dynamics and declining user engagement.​

The NFT market experienced a peak in activity in 2021, driven by celebrity endorsements and speculative investments. However, trading volumes have since plummeted by over 90% from their all-time highs. High-profile sales, such as Beeple's $69 million NFT at Christie's, initially drew global attention to the space. Yet, much like the dot-com bubble of the early 2000s, the NFT market has proven to be unsustainable in the long run, fueled more by speculation than lasting value.​

In light of these developments, NFT collectors and investors are encouraged to reassess how they secure and manage their digital assets, considering the evolving landscape and the potential for further platform closures.

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