In response to the decline in NFT trading volume and price, Formfunction, the one-to-one NFT marketplace built on the Solana blockchain, disclosed its intention to shut down the platform. The digital company declared on March 15 that it will only be operational until March 29 without giving a specific reason. The decision was made after “much deliberation and careful consideration,” the platform noted.
From its beginning, Formfunction has been harmed by the low trading volume of NFT and the falling floor prices. In addition, the cost of the SOL token has significantly dropped from its Jan 2022 price of $100 to its current level of roughly $20. It denotes a value decline of almost 80% for SOL.
Formfunction In Trouble
Thirteen months after its introduction in February 2022, the NFT market is ending. The company is releasing a new tool for NFT developers to help them transfer NFTs from the platform as part of its disclosure. It would make it possible for NFT creators to sell their works or show them off on other NFT markets.
The digital platform nonetheless guarantees that you have “full control of your NFTs,” even though it is turning off its services. In the past 12 months, the daily average of new purchasers for Solana NFTs has also decreased, according to statistics given by NFT data aggregator CryptoSlam. At 5,400, it is currently less than half the average amount seen at the beginning of 2022.
Data from the Solana NFT data collector SolanaFloor shows that blue-chip NFTs, a class of Non-fungible tokens famed for their stability in value, have similarly fallen more than 75% in cash terms before February 2022 began. On March 15, Magellan, the head of communication and advertising at Formfunction, tweeted her thoughts on the disclosure. He emphasized that the co-founders and the company changed course, most likely leaving the SOL and cryptocurrency industries.