WazirX shuts down its NFT marketplace (2024)

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WazirX shuts down its NFT marketplace? ›

“The WazirX NFT marketplace has been sunseted. You can still trade your NFTs on OpenSea,” says the official website for the NFT marketplace. WazirX said that it shut down the marketplace because it failed to get much traction.

WazirX announced on February 22 that it is shutting its non-fungible tokens (NFT) marketplace due to a lack of traction, indicating an increasingly difficult business environment for the virtual digital assets (VDAs) segment amid high taxes, regulatory uncertainties, and global market volatility.

It acts as a platform for an auction of digital crypto art and other non-fungible items that users can buy and sell. Global NFT Marketplace market is projected to reach US$ 1985.9 million in 2029, increasing from US$ 1590.6 million in 2022, with the CAGR of 3.4% during the period of 2023 to 2029.

Benefits of NFT Marketplace Development

Ownership and Authenticity: NFTs provide proof of ownership and authenticity for digital assets, including art, music, videos, and more. This ensures that the buyer has the original and not a copy.

On February 24, Indian crypto exchange WazirX abruptly shut down its NFT marketplace “due to low volume and traction.” The company said it had collected a fee of just around $6 over the past 30 days while its “server expenses are in thousands of dollars.”

"Suspension/Blocking of a user's account is subject to our terms and conditions i.e., when there is a violation of policies, deficient or suspicious KYC, or if we notice our platform is being used for illegal activities, we suspend/block the account of the user," the report said.

TLDR: NFTs are shaping up to revolutionize various industries, from art and real estate to gaming and music, with advancements focused on sustainability and community governance. As technology evolves, so too will the applications of NFTs, making digital interactions more valuable and meaningful.

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Instead of a few collections worth millions, there might be smaller NFT projects with more accessible prices and higher utility. The sector still has to fight wash trading, scams and rug pulls to change the perception of regular consumers.

Technically, yes — NFTs are currently not at their peak. However, that doesn't mean that the market is over or that there's no point in investing in NFT digital art anymore. There are still profits to be made in the niche for those that can find collections with good potential.

What is happening with the NFT market? ›

Due to these factors, the NFT market saw a significant downturn in 2022. According to a NonFungible report, the third quarter of 2022 saw a 77% drop in transaction value in dollars, with net losses reaching $450 million for the first time.

Quick list of reasons NFT projects fail: Not understanding the market. Lack of long term strategy. Lack of adaptability in a volatile market.

This oversaturation not only diminished the uniqueness of individual tokens but also made it more difficult for great projects to stand out from the crowd. Another key factor that is contributing to the decline in NFT values is the lack of intrinsic value in many digital assets.

Everyone can create an NFT on OpenSea. The marketplace supports Ethereum blockchain, Solana, Polygon, and Klaytn blockchain. MetaMask, Coinbase Wallet, and Portis crypto wallets are integrated into the platform. The standard commission is 2.5% of the cost of the NFT.

WazirX delisted 3 market pairs associated withLUNA (LUNA/USDT, LUNA/INR, and LUNA/WRX) on May 13, 2022. While these downfalls are not in the hands of the exchanges, we at WazirX have tried our best to enable the LUNA investors to withdraw their funds.

Another significant contributor to the fall was the broader economic environment. The NFT boom coincided with economic uncertainty, with the impacts of the Covid-19 pandemic resulting in higher inflation, interest rates and tighter monetary policy.

Still, NFT sales have significantly dropped since their 2021 peak and many speculate that oversaturation may have killed off the non-fungible token business for good. Although some NFTs have lost value, however, others continue to be valuable – particularly those with historical significance or strong communities.

There is not any law passed by the Indian government that is related to NFTs. However, there are some regulations that ban cryptocurrency in India and also state that it is illegal to mine, generate, hold or sell cryptocurrencies in the territory of India.