The NFT (non-fungible token) bubble has been burst for a long time, and now Binance, the world's largest cryptocurrency exchange, is still going after NFT. Binance recently issued a notice announcing that the platform will no longer support any NFT transactions. Subsequently, Binance will transfer users' NFT token balances to Binance's self-hosted cryptocurrency wallet.
This situation in Binance is not new. Some exchanges have gradually stopped supporting NFTs before, because there are not many users trading NFTs, and those early high-priced NFTs are now basically no one cares about. Of course, there are also scammers who spent 3 million US dollars to buy the NFT made by Twitter founder Jack Dorsey’s first tweet, but this direct screenshot does not seem to make any difference.
The adjustments Binance has prepared are as follows:
All NFT holders must withdraw transferable NFT tokens from Binance before July 3, 2026. After this period, the NFT will no longer be accessible. For some non-transferable NFTs that cannot be withdrawn due to design reasons, Binance Academy will provide course completion certificates in PDF format as a souvenir for users. Of course, the PDF is only for users to view and is not processed by the on-chain system.
Users can transfer NFTs to Binance's self-hosted cryptocurrency wallet, which Binance claims will provide NFT holders with more convenient access to Web3 and decentralization-related functions. As a compensation measure, Binance will select 100,000 users to provide 1USDC compensation. This compensation is mainly used to offset the handling fees for withdrawing or transferring NFTs. Of course, if the handling fees are not enough, users will have to pay it themselves, and not all NFT holders can receive this 1USDC compensation.
Most NFTs are currently worth zero:
NFT tokens reached their peak in the summer of 2022. At that time, related transactions were so hot that some NFT tokens could even sell for as high as $3 million. At that time, non-cryptocurrency companies, namely some technology companies, also successively launched commemorative non-tradable NFT tokens hoping to catch up with the craze, but this craze passed quickly.
Now the value of most NFT tokens has returned to zero, and the price of a few NFT tokens that were popular at the time has plummeted by 93%. For the entire industry, NFTs are a thing of the past. This is why cryptocurrency exchanges such as Binance and Kraken have stopped supporting NFTs.