VK's NFT Dream Crashes: Kremlin-Backed Giant Pulls the Plug Amid Soaring Losses

NFT Hub Shuts Down April 15, Leaving Users Scrambling

Hang onto your hats, crypto fans! VK, the Kremlin's darling of social media, is slamming the brakes on its NFT rollercoaster. The VK NFT Hub, launched with a bang in December 2022, is set to close its digital doors on April 15. In a last-minute scramble, users are being told to yank their tokens out of VK and into external wallets before the clock runs out.

Neon Dreams Fade to Black

Come April 15, those flashy neon diamonds that made your VK avatar pop? Poof! Gone. Yep, those special visual markers tied to NFTs will vanish, leaving folks who shelled out cash for the bling with zilch. The NFT crew at VK says the community's existing content will stick around, but who knows if VK will ever dive back into the wild world of NFTs or digital assets.

Financial Firestorm Fuels the Shutdown

What's behind this sudden shutdown? VK's financials are burning hotter than a crypto bull run. The company's net loss has skyrocketed, nearly tripling to a staggering 94.9 billion roubles (that's about $1.1 billion) in 2024, up from 34.3 billion roubles the year before. Desperate times call for desperate measures, and VK is planning to raise up to 115 billion roubles through a new share issue to try and douse the debt fire.

Crypto Marketplaces Crumble as VK Struggles

VK isn't the only one feeling the heat. March was a bloodbath for NFT marketplaces, with closures left and right. From South Korean tech giant LG shutting down its LG Art Lab to the demise of X2Y2 and Bybit's NFT marketplace, it's been a rough ride. VK's hoping the cash from its share issue will help ease the pain, but in the cutthroat world of crypto, there are no guarantees.