Bybit Shuts Down NFT Marketplace After Major Security Breach

Crypto exchange Bybit has announced that it will shut down its NFT marketplace on April 8, redirecting its focus to core trading services.

The decision follows a security incident in February that resulted in the theft of $1.46 billion worth of digital assets, marking it as one of the largest hacks to date.

To prevent potential asset loss, Bybit is advising users to move their NFTs to external wallets before the platform officially closes. The closure also comes amid a noticeable downturn in the NFT market, with trading volumes falling significantly on major platforms in recent months.

Despite this setback, optimism around NFTs remains strong within the crypto community. Recently, Canary Capital submitted an S-1 registration to the U.S. Securities and Exchange Commission (SEC) to launch an ETF centered on NFTs.

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The proposed ETF would invest directly in Pudgy Penguins NFTs, their utility token PENGU, as well as other related crypto assets like Ethereum and Solana. The filing highlights the ongoing interest in combining NFTs with traditional financial products.

Some industry figures continue to express confidence in the future of NFTs. In December, Raoul Pal suggested that the growing appeal of digital assets among younger generations, coupled with concerns over fiat currency debasement, could drive the long-term success of NFTs.

Bybit, meanwhile, reiterated its commitment to advancing blockchain technology, pledging to strengthen its security measures after the February breach.

Alexander Stefanov