Bybit to Cease NFT, Inscription, and IDO Marketplaces by April 8, 2025
Bybit, the cryptocurrency exchange, has announced plans to terminate its NFT marketplace and Inscription services effective April 8, 2025. This decision comes amid a significant decline in NFT trading volume compared to the previous year, prompting the platform to reevaluate its offerings. Alongside the cessation of NFT and Inscription services, Bybit will also discontinue its Initial Decentralized Exchange Offering (IDO) products. This strategic shift mirrors similar actions taken by other major platforms in light of recent trends in the NFT market.
Bybit’s Strategy to Simplify Operations
The closure of Bybit’s NFT and Inscription marketplaces is part of a larger strategy aimed at streamlining the exchange’s operations. Bybit has expressed its intention to enhance user experience by reducing the variety of products it offers. As of April 8, users will no longer have access to the NFT marketplace, and those with assets in the Inscription marketplace will see services halted. The exchange has recommended that users transfer their holdings before the deadline to safeguard their assets.
Impact of Security Breach on Bybit
This strategic change follows a challenging period for Bybit, marked by a significant security breach in February 2025. The incident resulted in a loss of approximately $1.5 billion, attributed to hackers believed to be tied to North Korea. CEO Ben Zhou has stated that efforts are underway to track the stolen funds, although some of the assets may be permanently lost. This breach has raised substantial concerns about security, prompting the exchange to reassess its product lineup.
Declining Demand in the NFT Market
Bybit’s decision to shutter its NFT marketplace reflects a broader decline in the NFT sector. Recent data indicates that the NFT market has experienced a staggering 70% drop in trading volumes compared to 2024. Daily trading volumes plummeted to $5.34 million from a peak of $113.6 million in December 2024. This downturn is attributed to a waning interest from investors in speculative purchases, who are now focusing on practical applications of NFTs in sectors like gaming and artificial intelligence. However, some projects within the NFT space, such as Doodles, Milady Maker, and Pudgy Penguins, have shown resilience and exceeded market expectations.
Instructions for Users and Asset Management
Users of the Bybit exchange are urged to take necessary steps for asset management ahead of the April 8 cutoff date. NFT holders are encouraged to transfer their tokens to platforms such as OpenSea, Blur, and Magic Eden. Those involved in the Inscription marketplace should consider migrating their assets to alternatives like Unisat and Magic Eden. Additionally, participants in IDOs are advised to move their airdropped Web3 Cloud Wallet tokens to personal wallets prior to the marketplace’s closure.
