In an unfortunate turn of events, RECUR, a leading name in the non-fungible token (NFT) industry, has announced its imminent shutdown amidst a biting bear market. This revelation comes from the company’s resounding success two years ago, when it raised $50 million in a Series A funding round.
The RECUR Timeline of Events
Over the recent weekend, RECUR made a public statement regarding its decision to phase out its operations gradually. The comprehensive cessation of its business is scheduled for November this year.
As of August 18, the company stopped its primary and secondary sales. Nevertheless, they’ve ensured that users can safely transfer their NFT assets to external wallets and claim redeemable balances until August 31.
Follow CryptoMode on Twitter, Youtube and TikTok for news updates! As the winding down process intensifies, RECUR will disable NFT deposits by November 9. That gives users a window until November 16 to transfer their remaining NFTs and USDC. However, accessing the website will be impossible after the withdrawal deadline.
Shifting Assets to IPFS
To maintain transparency and accessibility, RECUR has disclosed that all NFT media and attributes will be relocated to the InterPlanetary File System (IPFS) by November 22. The IPFS, renowned for its decentralized storage protocol, guarantees data accessibility. That means that users can still access and retrieve their NFTs post RECUR’s shutdown, a move applauded for considering the interests of the platform’s users.
It’s almost surreal to note that RECUR’s decision to shutter its doors comes barely 24 months post securing a $50 million from eminent industry investors, including the likes of Steve Cohen. This monumental investment catapulted RECUR to a market valuation north of $300 million in September 2021.
Moreover, RECUR’s partnership with global powerhouse ViacomCBS (now branded as Paramount) placed them at the forefront of digital collectibles, collaborating with household names such as CBS, MTV, Showtime, Paramount Pictures, and even Nickelodeon.
The Bear Market’s Impact
Yet, the NFT realm hasn’t been impervious to the bear market’s clutches. The downturn has adversely affected the sector, leaving an indelible mark on RECUR’s financial stability. In an official statement, the company admitted, “While the decision to conclude operations was arduous, shifting business terrains and unexpected hurdles have hampered our ability to deliver the gold-standard service we’re known for.”
Interestingly, RECUR isn’t an isolated case. The broader web3 sphere has seen multiple casualties. Case in point, Nifty’s, a platform crafted for Web3 creators, recently declared its business closure, attributing it to harsh market dynamics and pressing financial hurdles.
As the NFT space grapples with market volatility, industry leaders and stakeholders are reminded of the importance of resilience and adaptability in this ever-evolving digital realm.
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