NFT Startup Recur Announces Platform Wind-Down Amid Crypto Winter
- NFT startup Recur announces winding down of Web3 platform due to challenges in the cryptocurrency landscape
- Despite hosting major brands like Hello Kitty and Nickelodeon, Recur succumbs to the impact of ongoing crypto winter
- The company shares plans to gradually phase out core platform features, including NFT withdrawals and trading on hosted marketplaces
- Recur’s struggle reflects wider challenges in the NFT industry, navigating a decline in digital collectible popularity
- Recur’s vision for Web3 as a provider of building blocks for digital collectibles faces difficulties, while plans for continuity involve migrating NFT data to IPFS and Filecoin networks
As the cryptocurrency landscape faces shifts and challenges, the NFT startup Recur has revealed its decision to wind down its Web3 platform.
Despite hosting big brands such as Hello Kitty and Nickelodeon on its platform, Recur has found itself unable to withstand the impact of the ongoing crypto winter.
Navigating a Challenging Path
In a recent blog post, Recur shared its plan to gradually phase out its core platform features over the next few months.
This includes functionalities like withdrawing NFTs, cashing out stablecoin balances, and trading collectibles on Recur-hosted marketplaces.
The startup openly expressed the difficulty of this decision, acknowledging “unforeseen challenges and shifts in the business landscape” in a tweet.
NFT Industry Headwinds
Recur’s move echoes the broader challenges faced by NFT companies as they navigate a decline in the popularity of digital collectibles.
Despite their previous ambitious collaborations, including a partnership with Hello Kitty and Friends, Recur found itself needing to adjust course.
The startup had reported “unprecedented demand” for its TV Packs, featuring profile-picture (PFP) NFTs of Nickelodeon characters.
However, as of November, Recur will disable pack openings.
Recur’s Web3 Vision
Founded in 2021, Recur positioned itself as a provider of Web3 “building blocks” for other businesses.
Its platform aimed to facilitate the creation of in-game assets, loyalty programs, and digital collectibles utilizing NFTs.
A Journey Forward
Recur’s closure mirrors the recent shutdown of Nifty’s, another platform with strong ties to media titles like “The Matrix” and “Game of Thrones”.
With over 380,000 NFTs minted on its platform, Recur has outlined plans to ensure the continuity of digital collectibles.
Metadata and media associated with Recur’s NFTs will be transferred to the InterPlanetary File System (IPFS), a decentralized peer-to-peer file-sharing network.
Additionally, other assets will be hosted on Filecoin’s network.
Reflections on Recur’s Legacy
Recalling its history, Recur introduced the Recur Pass in December 2021.
This NFT, sold for $300, granted holders early access to future NFT drops and other benefits.
The pass gained attention, with one selling for $88,888 in February.
Recur’s journey included a $50 million Series A funding round in late 2021, led by Digital, backed by billionaire hedge fund manager Steve Cohen.
Notable figures like Gary Vaynerchuk, Tyler, and Cameron Winklevoss, and Ethereum co-founder Joe Lubin also participated in its funding rounds.
As Recur’s platform winds down, the broader NFT ecosystem continues to evolve.
The startup’s measures to migrate NFT data and assets ensure that its impact on the digital collectibles space will be remembered, even as new chapters unfold in the world of blockchain and cryptocurrency.
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