Starbucks is officially discontinuing its "Odyssey" NFT program after two years "to prepare for what comes next."
According to its FAQ data published Friday, the coffeehouse company will shut down the NFT platform by March 31 and move all transactions to Nifty Gateway.
(Photo : Kevin Dietsch/Getty Images)
NFT traders are given until March 25 to complete "any remaining Journeys" transactions. All points gained from the Benefit Selection Period will automatically expire once the program closes.
Starbucks first launched the "Odyssey" NFT program as a US beta in 2022 to offer "a new experience powered by Web3 technology." The program was never able to leave beta.
More NFT Businesses Shutting Down
Starbucks is the latest company to shut down its NFT marketplace as the hype for the cryptocurrency exponentially died down since its initial boom during the pandemic.
As the values of most NFT markets plunged after they first became viral in 2020, many establishments have started moving away from the crypto market following unsuccessful ventures.
It did not help that NFTs remain in regulatory limbo, making their prices highly volatile, unlike bitcoins and other cryptocurrencies that recently received Federal backing.
The setbacks are estimated to have cost NFT platforms and businesses billions of dollars over the past four years.
Also Read: GameStop Shuts Down NFT Marketplace, Retreats from Crypto Space
Starbucks Revenues Hit with Boycotts
Although Starbucks did not provide any specific reasons why it is shutting down the "Odyssey" program, its revenue reports show a much clearer explanation.
The NFT program is not profitable enough, especially with the company losing billions of dollars over the last few months over boycotts.
Vox earlier noted that the Seattle-based coffee franchise's stock "is experiencing a historic losing streak" following massive backlash from customers over union busting and the effects of the rising inflation.
The coffee company also got involved in the ongoing boycott campaigns against US brands supporting Israel over miscommunication.
Starbucks CEO Laxman Narasimhan has since indicated plans to donate to the besieged Palestinians to make it up to customers.
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