X2Y2 NFT Marketplace Closes Its Doors, Shifts Focus to AI Innovations
May 28
2 min read
Non-fungible token (NFT) marketplace X2Y2 has announced its closure after three years of operation, effective April 30. The team will pivot towards developing artificial intelligence projects, marking a significant shift in their business strategy as they explore new opportunities in the rapidly evolving tech landscape.
Key Takeaways
X2Y2 will cease operations on April 30, 2023.
The team is transitioning to focus on artificial intelligence.
X2Y2 recorded $53.6 million in trading volume over the past year.
Industry experts suggest a shift towards utility-driven NFT applications.
The Closure Announcement
In a statement released on March 31, X2Y2 expressed excitement about the potential of AI, describing it as the "biggest paradigm shift we’ll see in our lifetimes." The team emphasized their commitment to building something innovative that could transform the crypto landscape. Despite X2Y2's trading volume being significantly lower than market leader Blur, which reported $3 billion, the platform still ranked fourth among NFT marketplaces, following OpenSea and Immutable.
Market Insights
Charu Sethi, president at Unique Network, commented on the closure, stating that it does not indicate a decline in the NFT market. Instead, she believes NFTs are entering a new growth phase, focusing on real-world applications in gaming, AI, and content authentication. Sethi noted that the speculative phase of NFT trading is over, and the future lies in creating value through utility.
The Future of NFTs
Sethi highlighted successful initiatives, such as Mythical Games, which raised $75 million to integrate NFTs into gaming. She stressed the importance of building communities and resilience in the NFT market, advocating for a shift towards utility-driven models that encourage ongoing user engagement.
Alexander Salnikov, co-founder of Rarible, echoed these sentiments, suggesting that the next wave of NFT projects will focus on strong use cases, including gaming and brand engagement.
X2Y2's New Direction
While details about X2Y2's new AI project remain sparse, the team hinted at a platform that would allow users to earn profits in a decentralized manner, powered by AI. They envision a system that could provide value across different market cycles, aiming to create long-term benefits for the crypto community.
The announcement comes amid reports of a downturn in AI-related tokens, which have seen significant declines from their 2024 highs. However, the rise of AI-driven crypto agents may follow a familiar pattern of initial boom, subsequent bust, and eventual resurgence, similar to past trends in the industry.
As X2Y2 transitions away from the NFT marketplace, the broader implications for the NFT sector remain to be seen. The focus on utility and real-world applications may pave the way for a more sustainable future in the NFT space, as platforms adapt to the changing landscape of technology and user expectations.
Sources
NFT marketplace X2Y2 shuts down after 3 years, pivots to AI, Cointelegraph.