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The years between 2020 and 2021 felt like a different internet altogether.
For those of us who love sharing internet lore, that was the moment when non-fungible tokens (NFTs) stopped being obscure experiments and started creeping into everyday Discord conversations.
An NFT is a unique digital asset recorded on a blockchain that proves ownership and authenticity of something digital. It can be art, music, videos, collectibles, or even in-game items.
Unlike cryptocurrencies, NFTs are not interchangeable. This means that each one is distinct.
Related: Are NFTs a Good Investment?
Digital artists and crypto-native builders were creating a new subculture of the internet with NFTs, and everyone wanted to be a part of it.
What followed was a long and grinding NFT winter.
As volumes collapsed and hype faded, many early participants quietly walked away.
Data from CoinGecko shows the NFT market boomed in 2022. In April 2022, total NFT market capitalization surged to $17 billion, but has since fallen by around 85.5% to about $2.47 billion today.
Projects shut down, communities thinned out, and optimism turned to fatigue. Another early pioneer has now fallen, and I can't help but wonder whether this winter will ever truly end.
Nifty Gateway was one of the most recognizable names from that first wave of mainstream NFTs, helping bring digital collectibles to a broader audience at the peak of the boom.
Next month, it will shut down operations.
The shutdown has sparked sharp criticism from collectors and artists, many of whom questioned Nifty Gateway’s custodial model and the last-minute withdrawal process.
Digital artist Artchick (@digitalartchick) said support staff told her to “screenshot my NFTs to ‘withdraw them to my wallet’,” adding, “Not a serious industry.”
In another post, she questioned the very premise of NFT ownership on the platform: “Isn't the whole point of NFTs that we have full ownership/custody of the tokens? What are we supposed to withdraw?”
Collector Lancaster.eth (@Lancaster_eth) described the closure as “the dark side of web3,” writing that Nifty Gateway was where many first experienced digital art, but now “650k NFTs. One deadline. No second chances.”
Others warned of permanent losses if users fail to act in time.
CryptoGorilla (@CryptoGorilla) urged holders to move quickly, saying, “$7.8m in NFTs are about to be lost… Pieces from artists like Beeple, Sam Spratt and Xcopy lost forever.”
Artist XCOPY also encouraged collectors to withdraw immediately, as the NFTs remain held in a central omnibus wallet.
Criticism also focused on the platform’s centralized infrastructure.
Intrepid (@intrepid_p) said Nifty Gateway “was never about Web3 or adhering to any of the ERC standards,” noting that many NFTs were minted directly from the platform rather than artists’ own wallets.
Meanwhile, G4SP4RD (@G4SP4RD) raised concerns over metadata hosting, warning that if Gemini shuts down Nifty’s servers, collections from artists like Beeple and Sam Spratt “will be broken with no possibility of recovery.”
Founded in 2018 by twin brothers Duncan Cock Foster and Griffin Cock Foster, Nifty Gateway played a critical role in bringing NFTs to a non-crypto-native audience. It allowed users to purchase digital collectibles with credit cards, dramatically lowering the barrier to entry.
That design choice helped fuel explosive growth during the NFT boom. At its peak in mid-2021, Nifty Gateway processed more than $300 million in sales, hosting curated “drops” from high-profile artists including Beeple and Grimes.
But as NFT speculation cooled and volumes collapsed, the platform’s momentum faded. In April 2024, Nifty Gateway exited the traditional marketplace business and rebranded as Nifty Gateway Studio, shifting toward on-chain creative experiments and brand partnerships.
The pivot wasn’t enough to sustain long-term operations.
In a post on X over the weekend, Nifty Gateway said its platform will officially close on Feb. 23. The marketplace has already entered withdrawal-only mode, giving users roughly one month to move NFTs or remaining funds off the platform.
A shutdown notice is now live on Nifty Gateway’s homepage. Users can withdraw assets either through a linked Gemini Exchange account or directly to their bank via Stripe.
The company said customers holding NFTs, Ether (ETH), or U.S. dollar balances will receive detailed instructions by email and urged users not to wait until the deadline to complete withdrawals.
For many early NFT collectors, the announcement feels like the end of an era.
Gemini, owned by the billionaire Winklevoss brothers, acquired Nifty Gateway in 2019. It framed the shutdown as a strategic decision rather than a referendum on NFTs themselves.
“This decision will allow Gemini to sharpen its focus and execute on the vision of building a one-stop super app,” the exchange said.
Gemini added that it will continue supporting NFTs through Gemini Wallet.
The closure comes amid selective consolidation across the NFT sector. Earlier this month, Animoca Brands acquired digital collectibles firm Somo, folding its assets into a broader blockchain gaming ecosystem.
Related: Winklevoss twins’ Gemini sets Guinness World record with 1,000-drone Bitcoin show
This story was originally published by TheStreet on Jan 25, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
