Solana NFT marketplace Formfunction to shut down

Solana NFT marketplace, Formfunction, has announced that it will shut down on March 29, saying it “cannot continue to operate.” The marketplace is set to close after only 13 months of operation.

In a blog post on March 15, Formfunction informed its users that the decision to shut down the marketplace came after “much discussion and careful consideration.”

We have some sad news to share today—Formfunction is shutting down on Wednesday, March 29th.

This was an extremely difficult decision; however, after much discussion and careful consideration, we’ve come to the conclusion that we cannot continue to operate Formfunction.

— Formfunction (@formfunction) March 15, 2023

The post went ahead to thank creators who supported the platform, although it did not state the reasons why it is shutting down.

The company, however, assured creators that they still fully own their NFTs in what they termed the “beauty of web3”. It added that they are making it easy to export a hashlist of all NFTs so that creators can continue to display and sell their work on other platforms.

The platform will continue running until March 29, after which users can no longer access their website.

Creators urged to de-list NFTs

Formfunction called on creators to download their hashlists and de-list their pieces before the deadline to ensure easy listing on other platforms.

The company said that although the end has come, the team is still excited about the 1/1 art ecosystem and will continue to cheer creators in the space.

Formfunction’s head of community and marketing, “Magellan” as he is known, said in a tweet on March 15 that the founders and team are looking to work outside the crypto space.

It is with deep sadness to say that @formfunction is being sunset and closed down as the cofounders and team pivot to a new direction, likely outside of the crypto & SOL space.

A thread with a personal statement & reflections 1/n

— Magellan◎ (@CryptoMagellan) March 15, 2023

Despite being a part of the company since the launch, Magellan said he only learned of the news about a week ago. He added that he made lifelong friendships with creators, and it was not easy to say goodbye to the product the company worked hard to build together.

Solana NFT prices slump

Since the launch of Formfunctions in February 2022, Solana NFTs’ prices and volume have plummeted. The daily numbers of NFT buyers have also decreased in the past year.

SOL’s price dropped over 80% since the launch of Formfunctions from around $100 at the start of 2022 to around $20 at press time.

Solana NFT marketplace Formfunction to shut down - 1 — SOL Prices over the year 2022-2023 | Source: CoinMarketCap

The fall of FTX in November 2022 also greatly affected SOL’s price, given that FTX founder Sam Bankman-Fried was one of the earliest investors in the Solana blockchain.