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

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Kremlin-backed social network VK will close its NFT platform this month, following a year of deepening losses and a planned $1.36 billion share issue to reduce debt.

Russian social media company VK plans to shut down its marketplace for non-fungible tokens, VK NFT Hub, on April 15, the team said, ending a service that was launched in December 2022. In a public announcement, users were told to transfer their tokens to external wallets before the deadline.

After April 15, the special visual markers on VK associated with NFTs — small neon diamonds that appeared on avatars — will be removed, leaving users who purchased NFTs for this feature with nothing. The NFT team added that existing content in the VK NFT community will remain, though it’s unclear whether VK plans to return to NFTs or digital assets in the future.

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The closure comes as VK faces financial pressure as the company’s net loss nearly tripled in 2024 to 94.9 billion roubles (around $1.1 billion), up from 34.3 billion roubles in 2023. Amid declining financial health, the company revealed plans to raise up to 115 billion roubles through a new share issuance to reduce debt.

It’s understood that the company will direct the received funds to lowering its debt burden. As crypto.news reported earlier, March marked a turning point, with a series of marketplace shutdowns intensifying the situation. These included South Korean tech giant LG shutting down its LG Art Lab, as well as the closures of X2Y2, and Bybit’s NFT marketplace, among others.

Read more: NFT sales slip 5.3% to $100.9m, Bitcoin NFT sales drop 30%Original Article