Gemini Shuts Down Nifty Gateway
Gemini, the cryptocurrency exchange run by Tyler and Cameron Winklevoss, has announced that it will be closing Nifty Gateway, a non-fungible token (NFT) marketplace they acquired in 2019. Currently, Nifty Gateway is only allowing withdrawals and will be completely shut down by February 26th.
The decision aims to help Gemini concentrate on its goal of creating a comprehensive super app for its customers, according to the announcement.
Back in 2021-2022, NFTs were a big thing in the crypto world. Competitors like Coinbase and Kraken launched their own marketplaces around the same time. OpenSea, another NFT platform, also saw significant growth and was deemed a prominent player in the industry, boasting a valuation of $13 billion.
However, the NFT market has seen a downward trend since 2022. The launches of marketplaces like Coinbase and Kraken seem now to have been indicators of a market that was already on shaky ground. Coinbase plans to shut down its NFT marketplace in 2024 — despite initial denials about this last year — and Kraken is expected to follow suit. The lack of interest in virtual collectibles has led OpenSea to pivot towards becoming a multi-chain cryptocurrency trading aggregator.
During the height of the NFT craze, individuals paid astronomical sums for things like CryptoPunks and Bored Ape Yacht Club NFTs, often backed by celebrity endorsements. A notable moment was Paris Hilton discussing NFTs on a popular talk show, though it drew criticism for pushing what many saw as speculative assets without sufficient cautionary advice for the audience.
Subsequently, some celebrities faced lawsuits related to Bored Ape NFTs, and an employee from OpenSea was found guilty of insider trading, serving three months in jail.
According to the CryptoSlam 500 NFT Index, the largest NFT projects have plummeted by nearly 99% in value since their inception four years ago. Sales volume also dwindled dramatically; in early 2021, weekly sales surpassed $1 billion but fell to under $60 million by early 2026.
In a recent incident, Coinbase attempted a marketing stunt by removing a $25 million token, highlighting ongoing concerns about insider trading in both NFT and non-NFT cryptocurrencies. This seems to mirror issues with meme coins, where celebrities have, allegedly, acted as liquidity exits for token creators. Former New York City Mayor Eric Adams was recently accused of running a similar operation, while President Trump has reportedly benefited from both NFTs and meme coins.
Efforts are underway to lend more credibility to NFTs by using Bitcoin’s network to store actual images on the blockchain rather than linking to external files. However, this has faced some scrutiny due to spam concerns on the Bitcoin platform, and such projects have yet to achieve the success seen during the NFT peak.
Both Coinbase and Gemini are incorporating NFT functionalities into their apps. Still, it’s apparent that NFTs haven’t met the lofty expectations that many in the crypto space held when they first invested their time and resources into them. Since NFTs are managed by centralized issuers, they share some of the centralization issues echoed throughout the crypto industry lately.
As I’ve pointed out, the lofty use cases touted by figures like Mark Cuban during the NFT boom haven’t fully materialized. Yet, there are still enthusiasts who continue to engage with digital collections. Even if at a much smaller scale than once anticipated, people remain interested in collecting, just like the enduring appeal of Beanie Babies.
