NFTs
Binance halts support for Bitcoin NFTs citing ‘simplification’ of products offered
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NFT trading volume is at multi-year lows.
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Bitcoin NFTs caused widespread network congestion in December.
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Binance users will not be eligible for future Bitcoin NFT airdrops.
Cryptocurrency exchange Binance will stop supporting Bitcoin-based non-fungible tokens (NFTs) as it undergoes a process to “simplify” its product offerings.
“Users are advised to withdraw their Bitcoin NFTs from the Binance NFT Marketplace” before May 18, Binance wrote in a blog post.
He added that users will not be eligible for future airdrops related to NFTs hosted on the Bitcoin network.
Despite a resurgence late last year, several metrics including the number of unique buyers and USD trading volume have fallen to multi-year lows, according to data from non-fungible.com shows.
Bitcoin NFTs are generated through a method called inscriptions, which inscribes references to digital art into small Bitcoin-based transactions.
In December, Bitcoin NFTs caused widespread network congestion, something that “exposed a vulnerability” in the network, according to Luke Dashjr, a Bitcoin Core developer.
Interest in Bitcoin NFTs has since waned. Still, investment continues to flow into the sector, with Bitcoin wallet Ordinals Oyl increasing US$3 million last month from names like Arthur Hayes and Domo, creator of BRC-20.