VK, Russia’s leading social media platform, will officially shut down its NFT marketplace, VK NFT Hub, on April 15, 2025, after suffering major financial losses in 2024. This decision marks a significant retreat from the country’s digital asset ambitions. Moreover, it reflects a broader global downturn in the NFT sector.
VK pulls the plug on its NFT marketplace after losing $1.1 billion
In its latest announcement, VK reported a net loss of 94.9 billion rubles (approximately $1.1 billion) in 2024 — nearly triple the losses recorded in the previous year. Therefore, to ease financial strain, the company plans to raise an additional $1.36 billion through a new stock issuance aimed at restructuring its debt.
As a result of these financial difficulties, VK has urged users to transfer their NFTs to external wallets before the April 15 deadline. Otherwise, they risk permanently losing access to their digital assets. Additionally, the neon diamond icons on user avatars — which once signified NFT ownership — will also disappear permanently after the shutdown.
VK NFT users lose ownership visibility
NFTs on VK primarily served as digital accessories, allowing users to personalize their avatars with unique visual symbols. However, once VK NFT Hub goes offline, those who purchased NFTs solely for this purpose will lose all visual indicators of ownership on their profiles.
While the company plans to keep its NFT community page accessible, it has not yet shared any roadmap to return to the NFT or broader digital asset market. Consequently, many users remain uncertain about VK’s long-term commitment to blockchain-based projects.
Global NFT industry faces widespread crisis
VK’s exit from the NFT space isn’t an isolated case. On the contrary, it forms part of a growing global trend. In recent weeks, major platforms such as X2Y2 — once the world’s fourth-largest NFT marketplace — and Bybit NFT have also announced closures. Furthermore, South Korean tech giant LG recently terminated its NFT initiative, LG Art Lab.
According to Dune Analytics, NFT trading volumes have plummeted by over 90% since their peak in 2021. Even top-tier collections like Bored Ape Yacht Club (BAYC) and CryptoPunks have witnessed massive price drops. For instance, Justin Bieber, who bought a BAYC NFT for $1.3 million, now holds a token worth less than $25,000.
NFT crash resembles the dot-com bubble
This sharp decline in activity strongly resembles the dot-com bubble of the early 2000s. Back then, countless tech ventures flourished on speculative enthusiasm but ultimately collapsed due to weak fundamentals. Similarly, today’s NFT market often relies on hype and lacks the sustainability needed for long-term growth.
Moreover, recent studies show that 96% of top-ranked NFTs from 2022 have now become worthless, underscoring deep-rooted problems in the sector.
Conclusion
VK’s decision to shut down its NFT marketplace goes beyond a single company’s misfortune. In reality, it underscores a wider global retreat from speculative digital ventures. As more platforms exit the space, the NFT industry faces increasing scrutiny over its sustainability, value proposition, and future potential.
Going forward, the survival of NFTs may depend on building platforms that focus on utility, transparency, and genuine user value — rather than riding fleeting trends.
