Ethereum NFT marketplace X2Y2 is shutting down its trading platform at the end of April, the firm announced Monday, as the development team pivots to the intersection of artificial intelligence (AI) and crypto.
X2Y2’s smart contracts will persist, so trades can still be executed, but users will not be able to use the website’s front-end after April 30.
“I know this might sting, especially when it comes to token price. X2Y2 tokens were tied to this NFT vision, and as we close this chapter, that’s likely to hit hard,” said pseudonymous X2Y2 founder TP in a statement. “I feel that with you, and I’m not here to sugarcoat it.”
The marketplace’s native Ethereum-based token—X2Y2—is down 13% in the last 24 hours to $0.0014 and now trades at a market cap below $540,000. The current price is more than 99% off its all-time high of $4.14 from February 2022.
Once a prominent competitor to major NFT trading platforms like OpenSea and Blur, X2Y2 ranks fourth all-time for Ethereum NFT trading volume, facilitating more than $5.6 billion in transactions according to TokenTerminal.
The marketplace, which routinely saw more than $100 million in weekly NFT trading volumes in 2022, has recently processed around $1 million worth of trades weekly. The volume decline and general lack of interest in NFTs has led the team to discontinue the marketplace moving forward.
“Marketplaces live or die by network effects. We fought tooth and nail to be #1, but after three years, it’s clear it’s time to move on,” wrote the firm’s founder. “The NFT chapter taught us a lot—most of all, that lasting value beats chasing trends. That lesson’s why we’re drawing a line here, not a pause or a maybe, but a full stop on X2Y2 as we knew it.”
Despite closing its marketplace, the team is not leaving crypto entirely. Instead it will pivot its focus to the intersection of AI and crypto, primarily focused on “yields in a permissionless way, powered by AI.”
“It’s decentralized, it’s innovative, and it’s built to matter—bull or bear, cycle after cycle. This isn’t just another project; it’s our shot at creating real, long-term value in crypto, for the broader community we’re proud to serve,” TP concluded.
No timeline for the new project was provided. X2Y2 did not immediately respond to Decrypt’s request for comment.
Edited by Andrew Hayward
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