LG will shut down its non-fungible token (NFT) marketplace, Art Lab, on June 17, after three years of operation, according to a notice on its website.
Launched in 2022, Art Lab allowed smart TV users to buy, sell, and display NFTs directly from their screens. The platform initially operated on the Hedera network before expanding to Ethereum.
LG did not provide specific reasons for the shutdown but stated it would “shift focus and explore new opportunities.”
The decision aligns with a broader trend in the NFT space. Several companies, including Kraken, Immutable, Quidd, and MakersPlace, have already shut down their NFT marketplaces. The sector has struggled to regain momentum since the market downturn in 2022, with ongoing regulatory uncertainty adding to the challenges.
The U.S. Securities and Exchange Commission (SEC) has scrutinized the NFT industry, issuing Wells Notices to major platforms like OpenSea, arguing that NFTs sold on these platforms could be considered securities. However, last month, the SEC dropped allegations against Opensea and also closed its three-year investigation into Yuga Labs.
While some view these developments as positive signs, it remains uncertain whether the market will recover. Many major NFT collections have yet to reach their peak values from 2021 and 2022.
The Bored Ape Yacht Club (BAYC), once one of the most sought-after collections, saw a significant drop in floor prices in April 2023, reaching its lowest level since 2021. By September, some BAYC NFTs had lost up to 80% of their value. For example, BAYC #5115 sold for 11.24 ETH (around $27,353), a sharp decline from its purchase price of 51.15 ETH ($233,653) three years earlier.