South Korean giant LG has announced the closure of its NFT marketplace just three years after its launch. This follows a similar move by the exchange Kraken in the NFT space.
LG's Exit from the NFT Market
On March 20, LG Electronics confirmed plans to shut down its NFT marketplace LG Art Lab. The marketplace was disabled on March 10, 2025. The company is committed to automatically transferring all NFTs to users by April 30, 2025. LG entered the NFT market in 2022 with a platform initially based on the Hedera blockchain, later expanded to Ethereum. Despite cooperation with Samsung's NFT TV marketplace, LG could not maintain its position in the market.
More Projects Leave the NFT Market
In recent months, several major projects like Quidd and MakersPlace have announced their withdrawal from the NFT market due to market challenges. Nike also confirmed closing its virtual fashion and sneaker line RTFKT. GameStop previously shut down its NFT platform, which was launched during the NFT boom in 2022.
Reasons for Exiting the NFT Market
Volatility and unpredictability of the NFT market have been the major reasons for many companies leaving the sector. High levels of risk have made NFT investments unattractive for most organizations, with over 90% of NFTs found to be nearly or entirely worthless.
The closure of LG Art Lab reflects a general decline in interest in NFTs, although certain niches like gaming and virtual real estate continue to find applications for the technology.
