Crypto exchange Binance has announced the end of support for Bitcoin NFTs on its marketplace by April 18. This decision comes as part of the rationalization of its product offerings, despite the success of Ordinals.
Binance turns the page on Bitcoin NFTs
Less than a year after enabling support for Bitcoin NFTs, Binance has decided to backtrack. Starting April 18, users will no longer be able to purchase, deposit, bid, or list these NFTs on the Binance Marketplace. The stock exchange justifies this decision by its desire to “rationalize product offerings”.
However, the company remains evasive on the precise reasons for this turnaround. Have trading volumes and user demand been disappointing? Has the fierce competition from platforms like Blur weighed in the balance? So many questions that remain unanswered.
Launched in 2021 in full bull run, Binance's NFT marketplace had a promising start, driven by the reputation of the exchange and the partnership with football star Cristiano Ronaldo. But she failed to win against her rivals.
A tense regulatory context
Binance's decision comes in a difficult regulatory context for the exchange. Faced with problems in several countries, it notably agreed to pay a record fine of more than $4 billion in the United States and to cease its activities in the country.
Faced with these upheavals, Binance had to rethink the way it operated. The appointment of a board of directors of seven members, led by Gabriel Abed, former ambassador of Barbados to the United Arab Emirates, illustrates this desire to turn the page.
But the end of support for Bitcoin NFTs raises questions. Is this a sign of a broader refocusing of stock market activities? Will other services be impacted in the future?
Ironically, Binance's announcement comes as Bitcoin NFTs have never been more popular. Driven by the craze for Ordinals, they have generated $6.37 million in sales in the last 24 hours according to CryptoSlam, the 2nd highest amount in the sector.
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