eBay recently acquired KnownOrigin, which then led to a prompt closing of the company, and this set shock waves through the community. After just two short years, the digital art marketplace known as KnownOrigin has been closed. The main reason given by the company was shifts in the NFT market, and this was raising concerns regarding longevity and safety over digital assets.
The closure brings with it major implications for the NFT market and community. It disrupts not only the business of digital collectibles but also lays bare the uncertainty in relation to whatever the future could bear for NFTs on the platform of eBay. With the team and intellectual property behind KnownOrigin now brought under the aegis of eBay’s web3 division, a move which expands on an earlier partnership with the NFT platform OneOf. All this comes in the wake of a rough period for eBay, which, amidst the declining NFT craze, saw the company lay off 30% of its staff in February 2024.
Navigating the Future of NFTs
The recently shut down KnownOrigin marketplace points out the need for secure storage solutions to deal with issues regarding NFTs. Potential answers come in the form of on-chain marketplaces that offer decentralized and permanent data storage. Most NFTs are not stored directly on the blockchain but contain metadata pointing to an off-chain file stored on platforms like IPFS (InterPlanetary File System).
Understanding what an NFT represents is crucial. When you purchase an NFT, you buy a token pointing to a URL or to an IPFS hash which points to a JSON metadata file hosted on a server controlled by the NFT platform. This brings with it its own set of inherent risks, most notably around the sustainability and reliability of storage solutions such as IPFS.
The Way Forward for Collectors
In the wake of a KnownOrigin closure, it is important that collectors are aware and connected with the NFT community as following posts across social media and forums allows collectors to stay updated on any implications of a closure.
Collectors should monitor news sources and social media accounts for ongoing updates, including that of @KnownOrigin_io, which has confirmed the close and laid out the wind-down process. Being up to date with these changes, through weekly roundups of independent news, can help a collector proceed around an ever-evolving landscape.
Conclusion
The KnownOrigin shutdown sparks key conversations around NFT ownership and security, instilling the importance of the need for better-safe-keeping solutions in digital assets. Now that the NFT community faces this consequence of being off-chain reliant, it is time for platforms, artists, and collectors to demand solid solutions that protect value and integrity when it comes to digital art. Now that the future of NFTs on eBay is in question, it’s important to remind the industry just how strong the foundation should be for long-term viability.
Editor’s note: This article was written with the assistance of AI. Edited and fact-checked by Owen Skelton.
