Binance drops Bitcoin NFTs despite the hype for Ordinals

The crypto exchange Binance has announced the end of support for Bitcoin NFTs on its marketplace by April 18th. This decision is part of streamlining its product offerings, despite the success of Ordinals.

Binance Turns the Page on Bitcoin NFT

Less than a year after enabling support for Bitcoin NFTs, Binance has decided to reverse course. As of April 18th, users will no longer be able to buy, deposit, bid, or list these NFTs on the Binance marketplace. The exchange justifies this decision with its intention to “streamline product offerings”.

However, the company remains vague on the precise reasons for this reversal. Have transaction volumes and user demand been disappointing? Has fierce competition from platforms like Blur tilted the scales? Many questions remain unanswered.

Launched in 2021 during a bull run, Binance’s NFT marketplace had a promising start, propelled by the exchange’s fame and the partnership with football star Cristiano Ronaldo. But it failed to prevail over its rivals.

A Tense Regulatory Context

Binance’s decision comes amid a challenging regulatory environment for the exchange. Facing issues in several countries, it has notably agreed to pay a record fine of more than 4 billion dollars to the United States and cease its activities in the country.

In light of these upheavals, Binance has had to rethink its operational model. The appointment of a seven-member board of directors, led by Gabriel Abed, former ambassador of Barbados to the United Arab Emirates, reflects this desire to turn the page.

But the end of support for Bitcoin NFTs raises questions. Is this a sign of a broader refocus of the exchange’s activities? Will other services be impacted in the future?

Ironically, Binance’s announcement comes as Bitcoin NFTs have never been more popular. Driven by enthusiasm for Ordinals, they generated $6.37 million in sales in the last 24 hours according to CryptoSlam, making it the second-highest amount in the industry.