Kremlin-backed social network VK will shut down its NFT platform this month, planning a $1.36 billion equity issue to deepen its year-long losses and reduce debt.
Russian social media company VK said it will close the market for its inappropriate token VK NFT hub on April 15, and will end its service launched in December 2022.
From April 15th, special visual markers from VK associated with NFTs (the small neon diamonds that appeared in avatars) have been removed, leaving none left by users who purchased NFTs for this feature. The NFT team added that existing content from the VK NFT community will remain, but it is unclear whether VK will return to NFTS or digital assets in the future.
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The closure has almost tripled in 2024, increasing from 34.3 billion rubles in 2023 to 94.9 billion rubles (approximately $11 billion), as VK faces financial pressure. Amid declining financial health, the company has revealed plans to raise up to 115 billion rubles to reduce its debt.
It is understood that we direct funds received to reduce our debt burden. As Crypto.News previously reported, March marked a turning point, with a series of market closures bolstering the situation. These include South Korean tech giant LG shutting down LG Art Lab, closing X2Y2, and Bybit’s NFT Marketplace.
read more: NFT sales slip 5.3% to $100.9 million, Bitcoin NFT sales fell 30%
