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Lotte, a major retailer in South Korea, is reportedly planning to shut down its non-fungible token (NFT) operations.
According to Herald Corporation, Lotte Home Shopping, the company’s online commerce division, will close its NFT trading platform on July 2. This move comes after two years of operation since its launch in May 2022.
The NFT platform, available through Lotte’s shopping mobile app, was part of the company’s broader metaverse ambitions. It allowed users to buy and trade NFTs, with the possibility of secondary sales on OpenSea.
Notable NFT releases included its mascot NFT character “Bellygom” and those in collaboration with the artist “More King,” the virtual model “Lucy” and the movie “The Witch 2.”
This decision comes as a surprise, especially considering the recent announcement that Pudgy Penguins NFTs would expand to South Korea through a partnership with Lotte Group. However, the broader market downturn appears to have influenced Lotte’s decision.
Last month, NFT sales dropped significantly, falling by nearly 50% compared to April. Major blockchains like Bitcoin, Ethereum, and Solana also saw their lowest monthly sales in 2024.
The NFT market’s struggles have affected many large businesses over the past two years. In March, Starbucks ended its NFT rewards beta program, Odyssey, transitioning to the Nifty marketplace. The company has not provided specific details about the program’s future, leaving its direction open to speculation.
Similarly, in January, GameStop shut down its NFT marketplace after two years, citing regulatory uncertainties in the crypto space. This move was in line with previous decisions by X (formerly Twitter) and Meta to discontinue their NFT features, highlighting broader industry concerns.
