NFT marketplace X2Y2 shuts down after 3 years, pivots to AI

Non-fungible token (NFT) marketplace X2Y2 announced it is shutting down aft 3 years of operation.

According to a March 31 announcement, X2Y2 volition unopen down connected April 30, with the squad switching its absorption to an artificial quality project. The squad shared its enthusiasm for the rapidly increasing sector:

“It’s a pivot. Over the past 12 months, we’ve been diving heavy into AI—hands down the biggest paradigm displacement we’ll spot successful our lifetimes—and however it tin alteration crypto. We’re gathering thing new.“

Token Terminal information shows that X2Y2 saw $53.6 cardinal worthy of trading measurement implicit the past 365 days. While this is simply a acold outcry from marketplace person Blur with its $3 cardinal worthy of trading volume, it inactive awards the protocol 4th spot down Blur, OpenSea and Immutable.

X2Y2 365-day trading measurement chart. Source: Token Terminal

Charu Sethi, president astatine NFT-focused Polkadot and Kusama concatenation Unique Network, said the determination is not a motion of diminution successful the NFT market. She told Cointelegraph:

“The speculative signifier focused connected collectibles and trading is over, but NFTs are present entering their adjacent maturation epoch arsenic halfway infrastructure enabling monolithic opportunities successful gaming, AI, instrumentality engagement and contented authentication. “

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Real-world implementation is key

Sethi highlighted initiatives specified arsenic Mythical Games issuing ample numbers of NFTs connected Polkadot meant for in-game integration pursuing a $75 cardinal fundraise successful 2021. She besides pointed retired a DappRadar study showing that the blockchain gaming assemblage reached 7.4 cardinal regular unsocial progressive wallets successful 2024.

According to Sethi, “X2Y2’s acquisition highlights that NFT platforms cannot trust solely connected marketplace web effects.” Instead, companies should absorption connected gathering communities and marketplace resilience by gathering NFTs into real-world applications. She said that the cardinal is successful valuing inferior implicit speculation:

“Platforms should pivot toward utility-driven models that incentivize accordant idiosyncratic engagement, whether done gaming, sports fandom oregon AI-backed applications. Successful platforms volition make ecosystems wherever NFTs are portion of an ongoing worth cycle, not conscionable speculative trading assets.

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A caller focus

The announcement was scant connected details concerning the task that the X2Y2 squad is focusing on. Still, the steadfast suggested that the readers should ideate “yields successful a permissionless way, powered by AI.”

The caller level volition reportedly let users to gain profits passim carnivore and bull markets and full marketplace cycles, successful what is presumably a somewhat decentralized saltation connected AI-powered trading:

“This isn’t conscionable different project; it’s our changeable astatine creating real, semipermanent worth successful crypto for the broader assemblage we’re arrogant to serve.“

The announcement follows aboriginal February reports that tokens tied to artificial quality agents were down by arsenic overmuch arsenic 90% from 2024 highs. Still, caller reports suggest that the emergence of AI-driven crypto agents whitethorn beryllium pursuing a acquainted trajectory that mirrors the archetypal boom, bust and resurgence of ICO-era projects.

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