VK Ends NFT Hub Amid $1.1 Billion Deficit
VK, Russia’s leading social media titan, will terminate its NFT marketplace, VK NFT Hub, on April 15, 2025, following steep financial hits in 2024. This closure signals a sharp pullback from Russia’s digital asset dreams and reflects a global NFT downturn.
VK Quits NFTs After $1.1 Billion Blow
VK announced a net loss of 94.9 billion rubles—roughly $1.1 billion—in 2024, almost tripling its losses from the year prior. To counter this financial crunch, the company aims to gather $1.36 billion through a new stock issuance to rework its debt load.
With these pressures mounting, VK instructs users to move their NFTs to external wallets before the April 15 deadline. Those who don’t act could forfeit their digital assets entirely. The neon diamond icons on avatars—proud emblems of NFT ownership—will also fade away for good after the shutdown.
VK NFT Holders Lose Profile Highlights
NFTs on VK mostly acted as digital trinkets, allowing users to spruce up avatars with unique designs. Once VK NFT Hub shuts off, buyers who nabbed NFTs for this perk will find no ownership clues left on their profiles.
VK promises to keep its NFT community page running, but it offers no hints about rejoining the NFT or digital asset scene. This silence stirs uncertainty over VK’s blockchain commitment.
Global NFT Market Faces Growing Turmoil
VK’s NFT retreat matches a broader global shift. In recent weeks, key platforms like X2Y2—once a top-four NFT marketplace—and Bybit NFT have ceased operations. South Korea’s LG has also abandoned its LG Art Lab NFT venture.
Dune Analytics data indicates NFT trading volumes have plunged over 90% since their 2021 zenith. Elite collections like Bored Ape Yacht Club (BAYC) and CryptoPunks have taken huge value hits. Justin Bieber’s $1.3 million BAYC NFT, for example, now hovers below $25,000.
NFT Plunge Recalls Dot-Com Crash
This swift drop in NFT activity mirrors the dot-com implosion of the early 2000s. Speculative hype then boosted countless tech startups, only for many to flop when substance lagged. Today’s NFT market often banks on buzz but struggles to sustain itself long-term.
Data shows 96% of top 2022 NFTs now lack value, spotlighting core issues in the industry.
Conclusion
VK’s move to axe its NFT marketplace extends past one firm’s hardship. It reveals a global withdrawal from speculative digital gambles. As platforms exit, the NFT space grapples with rising doubts about its endurance, merit, and potential.
NFTs could persist if future efforts prioritize utility, transparency, and real user gains—moving beyond short-term crazes.
