The Kremlin-affiliated social network VK is set to terminate its NFT platform this month, following a year marked by significant financial losses and a planned $1.36 billion share issuance aimed at reducing its debt.
The Russian social media firm plans to close VK NFT Hub, its marketplace for non-fungible tokens, on April 15, as announced by the team. This service, which debuted in December 2022, will be discontinued, and users have been advised to transfer their tokens to external wallets prior to the deadline in a public statement.
After April 15, the unique visual indicators associated with NFTs—small neon diamonds on avatars—will be eliminated, leaving users who purchased NFTs for this feature empty-handed. The NFT team has noted that while the existing content within the VK NFT community will remain accessible, it is uncertain whether VK intends to re-enter the NFT or digital asset space in the future.
This shutdown comes as VK grapples with financial challenges, with the company’s net loss nearly tripling in 2024 to 94.9 billion roubles (approximately $1.1 billion), a significant increase from the 34.3 billion roubles reported in 2023. In light of its declining financial state, VK has disclosed plans to raise up to 115 billion roubles via a new share issuance to mitigate its debt burden.
The company is expected to allocate the raised capital towards reducing its debt. As noted earlier, March saw a pivotal shift in the market, with several marketplaces shutting down, including the closure of LG’s LG Art Lab and the cessation of operations at X2Y2 and Bybit’s NFT marketplace, among others.