VK Closes NFT Hub Following $1.1 Billion Hit
VK, Russia’s premier social media platform, will discontinue its NFT marketplace, VK NFT Hub, on April 15, 2025, after enduring severe financial setbacks in 2024. This closure represents a significant rollback of Russia’s digital asset aspirations and highlights a global NFT downturn.
VK Halts NFT Operations Amid $1.1 Billion Shortfall
VK revealed a net loss of 94.9 billion rubles—roughly $1.1 billion—in 2024, nearly tripling its deficit from the year before. To tackle this financial strain, the company seeks to raise $1.36 billion via a new stock issuance to overhaul its debt structure.
In light of these challenges, VK encourages users to shift their NFTs to external wallets before the April 15 deadline. Those who miss it could lose their digital assets entirely. The neon diamond icons on avatars—symbols of NFT ownership—will also fade away permanently post-shutdown.
VK NFT Owners Face Profile Feature Loss
NFTs on VK primarily acted as digital embellishments, enabling users to customize avatars with exclusive icons. Once VK NFT Hub ceases, buyers who acquired NFTs for this perk will find no visible proof of ownership on their profiles.
While VK commits to keeping its NFT community page alive, it provides no timeline for re-engaging with NFTs or digital assets. This uncertainty fuels doubts about VK’s future in blockchain initiatives.
Global NFT Market Encounters Broad Crisis
VK’s departure from NFTs fits into a worldwide trend. Lately, platforms like X2Y2—once a top-four NFT marketplace—and Bybit NFT have shut their doors. South Korean powerhouse LG has also scrapped its LG Art Lab NFT effort.
Dune Analytics data shows NFT trading volumes have nosedived over 90% since their 2021 peak. High-profile collections like Bored Ape Yacht Club (BAYC) and CryptoPunks have suffered steep declines. Justin Bieber’s $1.3 million BAYC NFT, for instance, now sits below $25,000 in value.
NFT Slump Mirrors Dot-Com Meltdown
This drastic drop in NFT activity recalls the dot-com crash of the early 2000s. Back then, speculative excitement propped up tech firms, only for many to fail when reality hit. Likewise, today’s NFT space often leans on hype without the backbone for enduring success.
Studies reveal a stark truth: 96% of leading NFTs from 2022 now hold zero value, pointing to systemic issues in the sector.
Conclusion
VK’s move to terminate its NFT marketplace stretches beyond a lone firm’s struggles. It signals a global retreat from speculative digital ventures. As platforms abandon the space, the NFT industry confronts rising doubts about its viability, purpose, and future.
For NFTs to thrive, upcoming platforms must emphasize utility, openness, and authentic user benefits—leaving transient trends behind.