LG to shut down NFT platform, joining wave of closures in the sector

Global electronics conglomerate LG will close down the NFT platform LG Art Lab after three years of business.

"After careful consideration, we have made the difficult decision to close the platform," LG Art Lab's notice said . "We believe it is the right time to shift our focus and explore new opportunities."

LG Electronics launched the NFT platform in September 2022, allowing users to trade NFTs and display digital art on its smart TVs. The platform also collaborated with various digital artists, including sculptor Barry X Ball.

The platform said it will automatically return the NFTs on the marketplace to user wallets by the end of April, with complete closure expected on June 17.

LG Art Lab's closure reflects a broader trend of NFT platforms shutting down, amid broader decline of the NFT market.

Kraken crypto exchange closed down its NFT marketplace in February to streamline resource allocation for future projects, while Nike's wearable NFTs startup RTFKT announced shutdown last December.

NFTs emerged in the early years of this decade as a new frontier encompassing digital assets, ownership and the creative world, spawning successful collections such as CryptoPunks, Bored Ape Yacht Club and Pudgy Penguins.

COVID-19's global impact also fueled NFT adoption, with people turning to digital experiences in NFTs and the metaverse under lockdown.

However, the NFT market has since experienced a dramatic downturn, with weekly trading volumes now less than $100 million, a stark contrast to the $3.24 billion peak in August 2021, according to The Block's data dashboard.