Bybit To Shut Down NFT Marketplace As Sales In The Sector Drop By 63%

Bybit announced the closure of its NFT marketplace on April 8 in the afternoon.
NFT YoY sales declined by 63% between Q1 2024 and Q1 2025.
The crypto exchange partners with Zodia Custody to ramp up its security following a billion-dollar hacking incident in February.

Bybit NFT Marketplace Closure

Cryptocurrency exchange Bybit is shutting down its non-fungible token (NFT) marketplace. According to the company, it will cease all operations of its NFT platform starting on April 8, 2025, at 16:00 UTC. During that time, its related web pages will no longer be accessible.

Bybit advised users to exercise the necessary actions to take out and secure their NFT assets before the deadline. Along the way, it recommended other platforms for customers who still wish to continue managing or trading their NFT assets, including Ethereum chain’s OpenSea, Blur, and Magic Eden.

In addition, the exchange directed Initial DEX Offering (IDO) participants with airdropped tokens at Bybit Web3 Cloud Wallets to move their tokens to Bybit Web3 seed phrase wallets or private key wallets for extra measure. Interested parties can contact the platform’s Support Team for assistance or clarifications regarding the matter.

The move comes amid the continuously dipping NFT sales over the past couple of years. In fact, Coinpaper noted that the sector suffered from a 63% drop in sales year-over-year (YoY) between the first quarter of 2024 and 2025. Even popular projects such as Crypto Punks and Bored Ape Yacht Club NFTs took the brunt of the trend with 47% and 61% losses, respectively, within the period.

Partnership with Zodia Custory

Fresh from the $1.5 billion hacking incident last February, Bybit announced a partnership with Zodia Custody. The institution-first digital assets platform is backed by Standard Chartered, Northern Trust, SBI Holdings, National Australia Bank, and Emirates NBD.

The collaboration allows the crypto exchange to utilize Zodia’s Interchange solution, which offers independent asset custody via regulatory-grade infrastructure. It lets institutional users deploy their capital for immediate trading on Bybit while their assets remain intact and fully segregated.

Overall, the design prevents co-mingling between customers and Bybit assets, which significantly exposes them to exchange-side risks. Furthermore, it neutralizes counterparty risks and the need to pre-fund exchange accounts.

“At Bybit, our mission is to provide institutional-grade solutions that meet the evolving needs of sophisticated investors,” said Shunyet Jan, Head of Institutional and Derivatives at Bybit, in a press release. “Zodia Custody’s reputation as a trusted, highly regulated custodian makes it the ideal partner to safeguard our clients’ assets while enhancing capital efficiency.”

What’s your Reaction?