Ah, that's a common behavior on Sui! Many NFTs are designed to live inside a Kiosk. When you transfer such an NFT, you're actually transferring the KioskOwnerCap that controls the Kiosk containing your NFT. So, the NFT remains within a Kiosk, but it's now under the ownership of the recipient's wallet. It's not a limitation of the NFT type itself, but rather a deliberate design choice by the NFT creator. This is often done to enable features like on-chain royalties, marketplaces, or structured asset management. To get it out of the Kiosk into your wallet's top-level address, you'd typically need to explicitly 'withdraw' it using the associated KioskOwnerCap.

Yeah, you've hit on it. Many NFTs on Sui are designed to be 'Kiosk-owned,' meaning they can only ever live inside a Kiosk object, not directly in your wallet's address. So when you transfer it, the system automatically places it into a Kiosk for the recipient, sometimes creating a new one if they don't have one already. It's a specific implementation choice by the NFT's creators, not a bug.

If the NFT must go through a Kiosk, you’ll need to create or access a Kiosk on the receiving wallet and deposit it there. Check the NFT’s metadata or the original minting platform they usually specify if it’s “kiosk-only.”

Some NFTs are restricted so they must be held or transferred through Kiosks — especially if they’re integrated with a marketplace like Bluemove, Clutchy, or others that adopted this flow.

Kiosk standard NFTs cannot be transferred to another wallet. They can only be traded on a marketplace.