In a sudden and dramatic turn of events, several major South Korean retailers have shut down their non-fungible token (NFT) operations, marking a significant blow to the sector. The latest casualty is Lotte Home Shopping, which announced the closure of its NFT trading platform, NFT Shop, on June 12.

A Brief but Flickering Flame

Lotte Home Shopping launched NFT Shop in May 2022, aiming to create a metaverse platform and make NFTs more accessible to non-crypto holders by using fiat KRW as the transaction currency. The platform allowed customers to access NFTs through the Lotte Home Shopping mobile app and featured a range of unique NFTs, including those of its corporate character Bellygom.

A Lineup of NFT Partnerships

The company partnered with Daehong Communications, a crypto startup owned by the Lotte Group, to release NFTs on the Polygon (MATIC) blockchain network. Lotte Home Shopping also collaborated with Pudgy Penguins, a popular Web3 IP, and developed NFT tie-ins with its virtual influencer Lucy and the hit horror movie "The Witch: Part 2. The Other One." The firm even planned to enable secondary NFT sales on OpenSea, the world's largest NFT trading platform.

The End of an Era

The closure of NFT Shop marks Lotte Home Shopping's "total withdrawal from the NFT sector." The company will hand over its remaining NFT business interests, including Bellygom NFT, to Daehong. This move follows Hyundai Department Store's decision to leave the market and Shinsegae's significant scaling back of its NFT offerings.

Focus on Core Business Areas

Industry insiders suggest that retailers initially jumped into the NFT business, but as the market slowed down, they are now focusing on strengthening their core business areas instead. The closure of NFT Shop and other similar platforms is a testament to the challenges faced by the NFT sector and the need for retailers to adapt to changing market conditions.

Conclusion

The sudden shutdown of NFT operations by major South Korean retailers marks a significant shift in the market. As the NFT sector continues to evolve, it remains to be seen whether these retailers will re-enter the market or focus on other areas of their business.