KEY POINTS
KnownOrigin, the non-fungible token (NFT) platform acquired by eBay in 2022, is set to shut down in the coming weeks.
The announcement was made on July 17 through a post on X (Twitter), where KnownOrigin stated, “After careful consideration and evaluation we can confirm KnownOrigin will continue to wind down.”
“KnownOrigin is proud of its place in the history of digital art since its inception in 2018. Thanks for all the support and helping creators emerge, grow and succeed over the years,” the thread continued.
The thread concluded with “We have always been in awe of the creativity of the CryptoArt community and we know the space will continue to innovate and go from strength to strength.”
This news follows a June announcement from KnownOrigin about changes in its processes. At that time, the platform reiterated its commitment to NFTs, saying, “KnownOrigin is a proud pioneer in the digital art space and we have always been committed to open source contracts and distributed data storage.”
Concerns about eBay’s NFT plans surfaced earlier this year. In February, reports suggested a 30% reduction in workforce at KnownOrigin, raising doubts about the platform’s future. David Moore, co-founder of KnownOrigin, addressed the situation, saying, “The last 7 days have been the toughest and some of the most challenging in my time at KnownOrigin/eBay.”
The decision to wind down KnownOrigin comes amidst a broader decline in the NFT market. Over the past two years, many businesses have decided to discontinue their NFT projects. For instance, in March, Starbucks shut down its NFT rewards beta program, Odyssey. GameStop also wound down its marketplace, and even NFT features on X were discontinued.
The NFT market has experienced significant downturns recently. Last month, NFT sales dropped by 46%, continuing a negative trend that started earlier in the year. May also saw a sharp decline in sales, dropping by nearly 50% compared to April, despite some notable individual sales and standout collection performances.
