In recent developments, Aqua, the Ethereum-based gaming NFT marketplace, has officially ceased operations. The closure, disclosed by CEO Sean Ryan on LinkedIn, is attributed to the measured expansion of the web3 gaming market. Ryan, a former Facebook VP, acknowledged the challenges faced by Aqua. "We did some things well and some not as well, but the Web3 gaming market isn't scaling at the anticipated rate," he shared. The decision to close aims to redirect efforts to alternative opportunities, especially for the platform's employees. Despite the closure, Ryan maintains optimism about traditional gamers eventually adopting web3 and the perks of owning their assets in game through NFTs, recognizing the prolonged timeline for realization. Aqua, recognized for its player-centric approach, offered a gaming NFT marketplace and embedded solutions for developers. Supporting NFTs on Ethereum, Polygon, and Immutable X, Aqua aimed to create a seamless gaming experience without redirecting players to external websites.

The shutdown sheds light on Aqua's struggle to secure funds amid the slower-than-expected growth of the web3 gaming market. Ryan, when contacted by the press, expressed belief in the category but noted the timing might have been premature. Earlier this year, Ryan highlighted Aqua's commitment to genuine gamers, distinguishing the platform from opportunistic traders. Conversations with over 50 blockchain game developers revealed a consensus for in-game marketplaces that integrate seamlessly. Aqua faced competition from other gaming NFT platforms, including Sequence, G2A, OpenSea, and Magic Eden. The closure aligns with a broader trend as gaming NFT platforms reassess their strategies in 2023. GameStop, in August, discontinued its NFT wallet citing regulatory uncertainty. These shifts underline the evolving challenges within the web3 gaming market as it adapts to a dynamic industry landscape.