MakersPlace to shut down after six years in digital art
Date: 2025-01-17 Author: Gabriel Deangelo Categories: BUSINESS
MakersPlace, a digital art platform founded in 2018, announced on January 17 that it was shutting down. The platform, which operated as an NFT marketplace, provided artists and collectors with the ability to create, buy, and sell digital artwork. However, challenges in the industry and a lack of funding led to the decision.
Immediately following the announcement, new account creations, token imports, and NFT issuances were stopped. New exhibitions and events will no longer be held, but existing works will remain available for purchase for a limited time.
The company promised to help artists and collectors with asset transfers, pay severance packages to employees, and return unused funds to investors.
Users are advised to transfer assets from the platform's custodial wallets to their personal wallets. To achieve this, an updated transfer tool will be implemented in February 2025, with the final asset transfer deadline set for June 2025.
The closure of MakersPlace coincides with a general downturn in the NFT market. According to a report from DappRadar, NFT trading volumes declined sharply in 2024, falling from $5.3 billion in Q1 to $1.5 billion in Q3, with a slight recovery to $2.6 billion in Q4.
Total NFT trading volume for 2024 was down 19%, and the number of sales was down 18% compared to 2023, making it one of the weakest years for the industry since 2020.
NFTs, or non-fungible tokens, are digital assets that use blockchain to prove ownership of unique items like art, music, or collectibles. Despite the popularity and growing interest in the technology in 2021, recent trends highlight its instability and the difficulty of maintaining market demand.
