Ethereum-based NFT marketplace X2Y2 will shut down its platform on April 30, marking the end of its three-year run as a decentralized alternative to OpenSea.
Challenges and Reasons for Closure
The decision follows a steep decline in trading activity and a broader collapse in NFT market volumes. Launched in February 2022, X2Y2 peaked with $209 million in monthly trading volume but struggled as competitors like Blur captured user attention and liquidity.
Founders' Reaction and Future Plans
The project’s pseudonymous founder, TP, stated in a farewell blog post that the team gave everything to compete, but decided a clean exit was the right move. TP emphasized they've not walked away from crypto, and will focus on artificial intelligence, calling it 'the biggest paradigm shift in our lifetimes'.
Impact on Token Holders
Core operations and marketplace features will cease, but smart contracts will remain live, allowing interaction with the protocol if needed. TP warned of expected volatility for X2Y2 token holders, with the token already down 89% in value over the past year. Its market cap is approximately $572,000, according to CoinGecko.
Though the marketplace is closing, the team isn’t walking away from crypto and will pivot towards leveraging artificial intelligence to create long-term value outside of the NFT space.
