Nifty Gateway Shuts Down – Users To Offload NFTs Before Feb 23 - SB Crypto Guru News- latest crypto news, NFTs, DEFI, Web3, Metaverse

The recent non-fungible token market downturn, which attracted massive value erosion, project failures, and a significant drop in market capitalization in late 2025, continues to produce major casualties. Nifty Gateway, one of the prominent non-fungible token marketplaces, has shut down its trading platform, citing massive losses. In this article, we shall explore this dispatch in detail.

Nifty Gateway Exits The NFT Market

In a January 24 blog post, the Nifty Gateway team confirmed plans to close down its operations by February 23, 2026. Starting today, Nifty Gateway is in withdrawal-only mode. It’s unclear whether NFT traders will permanently lose access to custodied assets after February 23. At the time of publishing, customers with a current balance in USD or ETH, or who hold an NFT, are being notified by email with instructions to move their assets off the Nifty platform.

Today, we are announcing that the Nifty Gateway platform will be closing on February 23, 2026. Starting today, Nifty Gateway is in withdrawal-only mode.

Nifty Gateway was launched in 2020 with the vision of revolutionizing digital art. Since launching, Nifty supported dozens of…

— Nifty Gateway Studio (@niftygateway) January 24, 2026

Launched in 2020, Nifty Gateway is a digital art marketplace and production studio specializing in non-fungible tokens, often referred to on the platform as “Nifties.” The NFT market platform was initially founded in 2018 by twins Duncan and Griffin Cock Foster and acquired in late 2019 by Gemini LLC, the cryptocurrency exchange owned by the identical twins Tyler and Cameron Winklevoss.

During its time, Nifty Gateway allowed NFT users to buy digital art using credit and debit cards and cryptocurrency. Unlike open marketplaces, Nifty Gateway was a centralized, curated platform. It hosted “drops” of exclusive limited-edition collections from artists like Beeple, Pak, and Refik Anadol. It reportedly paid out over $372 million in royalties to artists from secondary market sales.

Nifty Gateway will be remembered as a pioneering, curated NFT marketplace. It played a central role in bringing digital collectibles to the mainstream, especially during the historic 2021 NFT boom. It served as a high-profile, user-friendly NFT market platform and was often debated as a bridge between traditional finance and blockchain technology. The Nifty Gateway’s shutdown marks the end of the early, high-hype era of NFT marketplaces.

NFT Community Reactions

The sudden shutdown announcement has blindsided many artists and collectors, reigniting long-standing concerns about custodial NFT platforms, centralization, and the long-term preservation of digital art. The lack of clarity has left many users scrambling to understand what happens next, particularly around asset withdrawals, smart contract guarantees, and the long-term accessibility of artworks minted through the platform.

In a January 27 interview with Decrypt, Bryan Brinkman, an iconic artist and collector, expressed displeasure with Nifty Gateway’s sudden shutdown. “Now we are left with more questions than answers, Why the sudden shutdown, why the lack of communication, and what will happen to these artworks?” Bryan Brickman complained. Brinkman’s relationship with Nifty Gateway began in October 2020, when he participated in the platform’s first artist-curated asset mint by Ekaitza.

ICYMI: @niftygateway, which helped fuel early demand for digital artwork NFTs, will close up shop in February.

I spoke with artist/collector @bryanbrinkman & he says that roughly 500 works from his own releases remain in collectors’ custodial wallets and have not yet been…

— Erika Lee (@erikalee) January 26, 2026

“I saw the potential for an easy collecting platform that included credit card payments, custodial wallets, and high-quality digital art,” Brinkman said. Digital artist and collector Bryan Brinkman has been active in NFTs and digital art since its early days. Problems with the Nifty Gateway NFT marketplace began after the launch of OpenSea. “Over the years, we saw the NFT site struggle to adjust to demand and decline when the flippers discovered PFPs and OpenSea in the summer of 2021,” Brinkman revealed.

Factors That Fueled Nifty Gateway Downturn

Before summarizing, Bryan Brikman has noted that the rise of profile picture (PFP) projects like CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins, and of permissionless marketplaces like OpenSea, are among the factors that have contributed to Nifty Gateway’s downfall. Bryan noted that since their launch, users shifted attention away from curated art NFT platforms. Liquidity, speculation, and rapid iteration became the dominant forces in the NFT economy, while Nifty Gateway’s centralized structure began to feel increasingly limiting to some artists, Bryan noted.

In the meantime, Brinkman estimates that roughly 500 works from his own releases remain in collectors’ Nifty Gateway custodial wallets and have not yet been withdrawn. He has already withdrawn the 175 works from his personal Nifty Gateway collection. It’s unclear whether all NFT collectors will still be able to withdraw artwork from the platform after February 23, 2026.

Nifty Gateway joins the rapidly growing list of NFT marketplaces that have exited the NFT market. This includes Kraken NFT market, which shut down in February 2025, Game Step NFT, which exited in February 2025, RTFKT NFT Studio, which exited in January 2025, Bybit NFT, which shut down in April 2025, and X2Y, which shut down in April 2025. In October 2025, OpenSea pivoted from a pure NFT focus to becoming a multi-chain crypto trading aggregator after its original business model unraveled.