LG, a multinational electronics conglomerate based in South Korea, has announced that it will discontinue its NFT platform, LG Art Lab, after just three years of operation. According to a statement from the platform, the decision to discontinue the NFT marketplace was made due to the realignment of business priorities and response to changing market conditions.
“After careful consideration, we have made the difficult decision to close the platform…We believe it is the right time to shift our focus and explore new opportunities,” the notice read.
In preparation for the shutdown, the platform has announced that it will automatically refund and return all NFTs on the marketplace to users’ wallets by the end of April. Notably, the platform’s complete shutdown is scheduled for June 17.
With the shutdown expected to take place in the coming weeks, users have been notified of the closure and provided with instructions on how to download their purchased NFTs.
The Launch of the LG Art Lab
LG’s move to shut down the Art Lab marks a setback for the company’s foray into the NFT space. The NFT platform came to light at the height of the global NFT boom, which gained significant attention during the COVID-19 pandemic.
Launched in September 2022 on the Hedera blockchain, LG Art Lab was created to provide a platform for artists to showcase and sell their digital art, leveraging LG’s expertise in display technology.
Users of its smart TVs in the United States could buy, sell, and view digital artwork, including animated pieces and exclusive works. The platform had a wide selection of digital artwork for customers to choose from, priced between $60 for animated works and $3,800 for limited-edition and premium pieces.
However, despite initial enthusiasm, the platform has failed to gain significant traction in the highly competitive NFT market. One of the signs of the platform’s impending closure came earlier this month, when LG halted the NFT buying feature on March 10.
NFT Market Sees Major Downturn
The NFT market, which experienced a surge in popularity when it first emerged, has been experiencing a significant decline in recent months.
A string of platforms have closed their NFT divisions, and some are struggling with regulatory hurdles or outright closures, in cases like LG Art Lab. In a recent article, popular crypto platform Binance halted its support of Bitcoin NFT collectibles to simplify its product offerings.
