Parallel Finance, a well-known NFT lending protocol, has shut down, leaving a significant number of NFTs locked in its contracts.
Closure of Parallel Finance
Speculations emerged this week regarding the closure of Parallel Finance after four years of operation. On-chain analyst 0xQuit highlighted the issue, noting that collections such as Bored Ape Yacht Club, Mutant Ape Yacht Club, and Doodles were still stuck in Parallel vaults. The stranded NFTs are currently valued at over $800,000.
Issues with NFT Withdrawals
It was reported that CEO Yubo Ruan confirmed that late NFT withdrawals would cost users $500 per asset. This policy has sparked frustration among NFT holders, as many missed the withdrawal deadline. If assets are not reclaimed, they will be liquidated to return funds to lenders.
Trends in the NFT Market
Parallel Finance joins a growing list of NFT platforms that have exited the market. Closures of such platforms as Bybit NFT Market, Kraken NFT Platform, and others reflect a broader decline and restructuring trend in the NFT market following the speculative bubble of 2022-2023.
The closure of Parallel Finance illustrates the challenges faced by the NFT market and leaves many questions about the future of these digital assets.
