VK Scraps NFT Hub Following $1.1 Billion Loss
VK, Russia’s dominant social media network, will close its NFT marketplace, VK NFT Hub, on April 15, 2025, after facing hefty financial losses in 2024. This shutdown marks a notable retreat from Russia’s digital asset plans and echoes a global NFT market slump.
VK Drops NFT Project After Losing $1.1 Billion
VK posted a net loss of 94.9 billion rubles—about $1.1 billion—in 2024, nearly three times the prior year’s deficit. To lighten this load, the company targets $1.36 billion from a new stock sale to reorganize its debt burden.
Given these woes, VK urges users to transfer their NFTs to external wallets before April 15. Anyone who delays risks losing their digital holdings forever. The neon diamond icons on user avatars—once a badge of NFT ownership—will also vanish completely after the closure.
VK NFT Buyers Lose Avatar Perks
On VK, NFTs mainly offered digital flair, letting users deck out avatars with distinctive markers. When VK NFT Hub goes dark, those who bought NFTs for this feature will see all ownership signs vanish from their profiles.
Though VK pledges to preserve its NFT community page, it shares no vision for returning to NFTs or digital assets. This vagueness leaves users wondering about VK’s blockchain future.
Global NFT Space Hits Rough Waters
VK’s exit aligns with a worldwide wave of NFT setbacks. Recently, major players like X2Y2—once the fourth-biggest NFT marketplace—and Bybit NFT have closed shop. South Korea’s LG has also ditched its LG Art Lab NFT program.
Dune Analytics reports that NFT trading volumes have tanked over 90% since their 2021 high. Even premium collections like Bored Ape Yacht Club (BAYC) and CryptoPunks have seen values plummet. Justin Bieber’s $1.3 million BAYC NFT now lingers below $25,000.
NFT Fall Parallels Dot-Com Collapse
This rapid decline in NFT action evokes the dot-com bust of the early 2000s. Speculative zeal back then lifted countless tech outfits, only for most to fold when foundations weakened. Today, NFTs often ride waves of excitement but lack the durability for long-term growth.
Recent findings show 96% of top 2022 NFTs now sit worthless, revealing deep flaws in the market.
Conclusion
VK’s shutdown of its NFT marketplace reaches beyond one company’s troubles. It highlights a global shift away from speculative digital bets. As more platforms pull out, the NFT sector faces tough scrutiny over its staying power, value, and direction.
NFTs might survive if future platforms champion practical benefits, clarity, and true user worth—ditching fleeting fads.
