Crashing NFT market led to the shutting down of the WazirX NFT marketplace

According to the DappRadar analytics platform, trade volume on Open Sea, the largest NFT marketplace in the world, decreased to 99 percent in the four months between May and August 2022. To put things in perspective, NFT (non-fungible tokens) is a brand-new class of immutable, blockchain-based assets. Consider it unique rather than something you could mass-produce, like a signed jersey or a baseball card.

The decline in NFT market space is happening due to non-stability and the shadiness of the creators.

There are five significant grounds on which the decline of the crypto market is dependent.

1. Low attention towards suspicious activities: The onlooker’s enthusiasm has reduced over time, leading to inadequate projects running universally in the blockchain. This has further allowed scammers to make their way among the loopholes in the market space.
2. Rigorous crypto sales: There has been a collapse in the global crypto market from $1.02 trillion to $970.03 billion, which calculates to a total of 15% decrease. According to a recent observation, the most significant currencies have been trading in the red.
3. Following the trend vs thoughtful sentiments: The sudden rise occurred because everyone was initially willing to join the race. However, the availability of primary digital assets for sale has lowered the interest and tendency of investors to invest. Also, a sharp price fall has made the investors sceptical about their decision.
4. Ambiguous cases under NFTs: The cloudy vision of various commodities considered under NFT is the foremost reason it is only suitable for digital art and not digital assets. Digital art can be resold and still be used as an abundant source of investment. While on the other hand, a digital asset cannot be resold, and the value keeps depreciating. To understand the perspective of digital assets, consider the apparel industry. Apparel cannot be re-sold due to the product’s life, shape, size and quality variation.
5. NFTs are as versatile as ICOs (Initial Coin Offerings): Centralized marketplaces bridge the gap between the investors and the assets. The matter of fact here is that neither do they guarantee an authentic item nor do they do it without charging a massive amount.

WazirX, a cryptocurrency exchange, has closed down its NFT marketplace. This occurs as the cryptocurrency sector bears the brunt of the ongoing recession. The WazirX NFT marketplace has been sunsetted, according to the website for the exchange. NFT trading is still available on OpenSea. There are 46,400 things for sale right now on the cryptocurrency exchange’s OpenSea profile. According to WazirX, the marketplace failed to take off. The WazirX NFT Marketplace has been sunsetted. They are pleased to have introduced the first NFT bazaar in India in June 2021, featuring numerous artists’ creations.

“We take great pride in our contribution to India’s NFT industry. Our efforts have helped draw attention to many Indian creators, and we have given them a platform to display their ability”, stated the company.

As a result of the double whammy of a protracted bear market and new regulatory restrictions put in place by the government, the Indian crypto ecosystem has had a difficult time. Bitcoin exchanges are still keeping a low profile despite a sharp decline in trade activity. According to WazirX’s most recent proof of reserves report, the value of user assets held is $286 million. It stated there would be enough liquidity for customers to withdraw as its reserves-to-liabilities ratio is still above 1:1. The business added that it had built a secure platform where creators could present and exchange their distinctive digital goods. As a result, their customers may be confident they can keep their NFTs in their wallets and sell them on other marketplaces like OpenSea.

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