RECUR, a prominent non-fungible token (NFT) platform that successfully raised $50 million in an investment round two years ago, has made the difficult decision to shut down amidst the current bear market. The company recently announced its plans to gradually wind down operations, with a complete closure scheduled for November.
In light of this announcement, RECUR has already halted primary and secondary sales as of August 18. However, users will still have the opportunity to transfer their NFTs to external wallets and withdraw any redeemable balances accumulated prior to August 31.
To ensure a smooth transition, RECUR will disable NFT deposits by November 9, 2023. Traders will then have until November 16 to withdraw their remaining NFTs and USDC from the platform. After the withdrawal deadline, the website will go offline, rendering it inaccessible to users.
Despite the closure, RECUR has assured its users that they will still be able to access and retrieve their NFTs. The company plans to transfer all NFT media and attributes to the InterPlanetary File System (IPFS), a decentralized storage protocol that guarantees data retrieval by November 22.
This decision to shut down operations comes as a surprise, considering that just two years ago, RECUR secured an impressive $50 million in a Series A funding round. The company’s collaboration with ViacomCBS, now known as Paramount, allowed them to offer digital collectibles from popular mainstream media brands such as CBS, MTV, Showtime, Paramount Pictures, and Nickelodeon.
However, the prolonged bear market has taken its toll on the NFT sector, leading to financial challenges for RECUR and ultimately forcing the company to make this difficult decision. The company acknowledged the unforeseen challenges and shifts in the business landscape that have made it increasingly difficult to maintain the level of service and dedication they have always strived for.
RECUR is not the only web3 firm facing financial struggles in the current market conditions. Earlier this month, Nifty’s, a platform dedicated to Web3 creators, also announced its closure due to similar challenges.
The closure of RECUR serves as a reminder of the volatility and challenges faced by companies in the NFT space. As the market continues to evolve, it is crucial for businesses to adapt and navigate these uncertainties to ensure long-term sustainability.