In the ever-twisting tale of the crypto world, here’s a plot twist no one saw coming! The renowned NFT platform Recur has dropped a bombshell by announcing its decision to shut down. And guess what? This comes less than two years after they raised a whopping $50 million in a Series A funding round. Let’s unpack this, shall we?
Recur’s journey was upward, especially after securing such significant funding. But as they say, the crypto world is full of surprises. The platform has laid out a phased shutdown plan. Starting with disabling sales on August 18, they’ll gradually wind down until all site functions halt by November 16, 2023. If you’re a Recur user, it’s time to mark that calendar and ensure you’ve got all your digital ducks in a row.
Now, there’s a silver lining for those who’ve minted NFTs directly on Recur. The platform is migrating the metadata of these NFTs to the InterPlanetary File System (IPFS). IPFS is a decentralized storage protocol for the uninitiated, ensuring that data remains retrievable. So, even after Recur’s digital doors close, the information related to users’ NFTs will still be accessible. A thoughtful move, right?
But the million-dollar (or should we say, $50 million) question is – why is Recur shutting down? While they’ve had their fair share of fundraising success, including a $5 million seed round and the Series above A funding at a valuation of $333 million, the reasons for the closure remain unsurprisingly. The team has hinted at “unforeseen challenges and shifts in the business landscape.” Cryptic, right?
To add context, the NFT market has seen a downturn over the past year. Ethereum’s NFT sales value plummeted from over $4.9 billion in January 2022 to a mere $272 million in July 2023, as per CryptoSlam. Could this be a sign of the times for NFT platforms?
