eBay's KnownOrigin Winds Down On-Chain Marketplace & Minters For NFT Cryptoart

UPDATE 7-24-24

KnownOrigin has posted additional updates on X/Twitter indicating the wind down will be a phased processed with reduced functionality on the site as they direct user to secondary marketplaces where possible.

Firstly, thanks for all the kind words over the last week about KnownOrigin after our announcement to wind down on-chain activity. We appreciate there is some uncertainty around the platform and wish to clarify our position.

KnownOrigin will not be instantly closing it’s site and will maintain reduced functionality. Any significant changes will always be communicated. We will now direct users, where possible, to secondary marketplaces (currently OpenSea and Magic Eden).

Our fees on @OpenSea have been reduced to 0% (for new listings) and we are committed to roll this change across secondary marketplaces.

We will continue working on the platform to ensure the help centre including documentation is relevant and the remaining functions perform as expected. KnownOrigin NFTs are fully verified and open-source on the Ethereum blockchain with IPFS links to metadata.

Regarding IPFS we will continue to cover pinning costs for the next 2 years. Again, any extension or change to this will be communicated. We have seen lots of conversations around the permanence of NFTS and we advise creators & collectors to research and understand what this means for their collections.

Further updates will only be through our X profile or via the KnownOrigin platform. If you have any questions or need support please contact us through hitting the ‘Help’ button on our website.

eBay appears to be making big changes to its KnownOrigin NFT Marketplace 2 years after acquisition with an announcement made today on Twitter/X saying they will "wind down its on-chain marketplaces & minters over the upcoming weeks."

After careful consideration and evaluation we can confirm KnownOrigin will continue to wind down it’s on-chain marketplaces & minter (and signpost to secondary marketplaces) over the upcoming weeks.

KnownOrigin is proud of it’s place in history of digital art since it’s inception in 2018. Thanks for all the support and helping creators emerge, grow and succeed over the years.

We have always believed in non-custodial open technology and our smart contracts are fully on-chain, open-source and censorship resistant with metadata stored in the distributed IPFS network.

All KnownOrigin NFTs have been minted on the Ethereum blockchain. This means ownership is provable and the tokens can be openly traded on secondary marketplaces (such as @opensea and @MagicEden).

KnownOrigin are contactable for support and further documentation via the ‘help’ button on the site. Note: Further updates regarding the platform will be made only through our X account.

We have always been in awe of the creativity of the CryptoArt community and we know the space will continue to innovate and go from strength to strength.

eBay acquired KnownOrigin in June 2022 at the height of the NFT Cryptoart bubble, but many began to question the wisdom of that acquisition last year as the bubble burst and KnownOrigin struggle to gain ground against more established players like Blur and OpenSea.

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The writing was on the wall when eBay laid off ~1,000 people in January 2024, reportedly including over 30% of the KnownOrigin/Web3 team, and Chief Business Strategy Officer Stefanie Jay quietly exited the company.

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During Jay's tenure, eBay ramped up M&A activity considerably to power the "enthusiast buyer vertical focus" strategy, buying SneakerCon in 2021, TCGPlayer and MyFitment in 2022, and Certilogo and 3PM Shield in 2023.

In addition to KnownOrigin, eBay undertook other questionable investments, including flushing millions in funding via eBay Ventures down the drain when luxury fashion resale outlet Cudoni went out of business, and joining a consortium to take a 25% stake in Funko Pop, paying ~$21 a share for stock that now trades ~$9.30/share.

eBay's M&A practices have come under increasing legal and regulatory scrutiny with lingering questions about due diligence and disclosure in the TCGPlayer acquisition and 3 years of enhanced M&A compliance monitoring as part of a deferred prosecution agreement eBay signed with the Department of Justice after being found criminally liable in connection to the 2019 cyberstalking of journalists Ina and David Steiner of EcommerceBytes.

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There has been no public announcement from eBay about the future of KnownOrigin or if the remaining members of the Web3 team are being moved internally or let go - and it appears they have also yet to alert investors or the SEC about what would seem to be a material change in business operations.

eBay has not responded to request for comment as of time of publishing - stay tuned for updates in this developing story!