Ethereum NFT Marketplace X2Y2 Shuts Down, Pivots to AI-Driven Crypto Project

Ethereum NFT Marketplace X2Y2 Shutting Down as Team Shifts to AI - Decrypt

Ethereum NFT marketplace X2Y2 is shutting down its trading platform at the end of April, the firm announced Monday, as the development team pivots to the intersection of artificial intelligence (AI) and crypto. X2Y2's smart contracts will persist, so trades can still be executed, but users will not be able to use the website's front-end after April 30. "I know this might sting, especially when it comes to token price. X2Y2 tokens were tied to this NFT vision, and as we close this chapter, that's likely to hit hard," said pseudonymous X2Y2 founder TP in a statement. "I feel that with you, and I'm not here to sugarcoat it." The marketplace's native Ethereum-based token -- X2Y2 -- is down 13% in the last 24 hours to $0.0014 and now trades at a market cap below $540,000. The current price is more than 99% off its all-time high of $4.14 from February 2022. Once a prominent competitor to major NFT trading platforms like OpenSea and Blur, X2Y2 ranks fourth all-time for Ethereum NFT trading volume, facilitating more than $5.6 billion in transactions according to TokenTerminal. The marketplace, which routinely saw more than $100 million in weekly NFT trading volumes in 2022, has recently processed around $1 million worth of trades weekly. The volume decline and general lack of interest in NFTs has led the team to discontinue the marketplace moving forward. "Marketplaces live or die by network effects. We fought tooth and nail to be #1, but after three years, it's clear it's time to move on," wrote the firm's founder. "The NFT chapter taught us a lot -- most of all, that lasting value beats chasing trends. That lesson's why we're drawing a line here, not a pause or a maybe, but a full stop on X2Y2 as we knew it." Despite closing its marketplace, the team is not leaving crypto entirely. Instead it will pivot its focus to the intersection of AI and crypto, primarily focused on "yields in a permissionless way, powered by AI." "It's decentralized, it's innovative, and it's built to matter -- bull or bear, cycle after cycle. This isn't just another project; it's our shot at creating real, long-term value in crypto, for the broader community we're proud to serve," TP concluded.

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

NFT exchange X2Y2 will shut down after three years to pivot toward an AI-driven crypto project aimed at sustainable, utility-based value generation. Non-fungible token (NFT) marketplace X2Y2 announced it is shutting down after three years of operation. According to a March 31 announcement, X2Y2 will shut down on April 30, with the team switching its focus to an artificial intelligence project. The team shared its enthusiasm for the rapidly growing sector: "It's a pivot. Over the last 12 months, we've been diving deep into AI -- hands down the biggest paradigm shift we'll see in our lifetimes -- and how it can transform crypto. We're building something new." Token Terminal data shows that X2Y2 saw $53.6 million worth of trading volume over the last 365 days. While this is a far cry from market leader Blur with its $3 billion worth of trading volume, it still awards the protocol fourth place behind Blur, OpenSea and Immutable. Charu Sethi, president at NFT-focused Polkadot and Kusama chain Unique Network, said the decision is not a sign of decline in the NFT market. She told Cointelegraph: "The speculative phase focused on collectibles and trading is over, but NFTs are now entering their next growth era as core infrastructure enabling massive opportunities in gaming, AI, fan engagement and content authentication. " Related: The ABCD of AI: Automation, big data, computer vision and deep learning Sethi highlighted initiatives such as Mythical Games issuing large numbers of NFTs on Polkadot meant for in-game integration following a $75 million fundraise in 2021. She also pointed out a DappRadar report showing that the blockchain gaming sector reached 7.4 million daily unique active wallets in 2024. According to Sethi, "X2Y2's experience highlights that NFT platforms cannot rely solely on marketplace network effects." Instead, companies should focus on building communities and market resilience by building NFTs into real-world applications. She said that the key is in valuing utility over speculation: "Platforms should pivot toward utility-driven models that incentivize consistent user engagement, whether through gaming, sports fandom or AI-backed applications. Successful platforms will create ecosystems where NFTs are part of an ongoing value cycle, not just speculative trading assets. Related: Nvidia's stock price forms' death cross' -- Will AI crypto tokens follow? The announcement was scant on details concerning the project that the X2Y2 team is focusing on. Still, the firm suggested that the readers should imagine "yields in a permissionless way, powered by AI." The new platform will reportedly allow users to earn profits throughout bear and bull markets and entire market cycles, in what is presumably a somewhat decentralized variation on AI-powered trading: "This isn't just another project; it's our shot at creating real, long-term value in crypto for the broader community we're proud to serve." The announcement follows early February reports that tokens tied to artificial intelligence agents were down by as much as 90% from 2024 highs. Still, recent reports suggest that the rise of AI-driven crypto agents may be following a familiar trajectory that mirrors the initial boom, bust and resurgence of ICO-era projects.