Web3 Luxury Brand Cult & Rain is Shutting Down
TLDR:
- Web3-based luxury brand Cult & Rain, launched in January 2022, is shutting down due to financial struggles arising from Web3 market volatility.
- CEO George Yang announced the closure, expressing disappointment that funding efforts did not materialize into transactions, leading to the difficult decision.
- Cult & Rain ventured into the metaverse with “Cultr World,” a social club for users to interact and make purchases through the Cultr Shop, exploring the fusion of luxury fashion and blockchain technology.
- The company launched “Drop 002,” a phygital collection in partnership with Ltd.inc and DressX, combining exclusive physical luxury items with blockchain-based digital assets.
- Cult & Rain’s closure aligns with a broader trend of fashion companies stepping back from Web3 spaces, reflecting a decline in consumer interest and increased legal scrutiny.
Cult & Rain, a Web3-based luxury fashion and sneaker company that entered the scene in January 2022, is shutting down operations.
The company, founded by George Yang, aimed to revolutionize consumer interactions with the metaverse, but it seems the volatility in the Web3 market has taken its toll.
The Announcement and Financial Struggles
George Yang, the Founder and CEO of Cult & Rain, shared the unfortunate news through a heartfelt letter posted on the company’s social media accounts.
He highlighted the adverse impact of Web3 market volatility on the company’s financial position and sales. Despite efforts to secure funding, the team’s conversations with potential investors did not materialize into transactions, leading to the difficult decision to shut down.
“As a result, with a heavy heart, we have come to the most difficult decision that the only course of action is to shut down the company,” said George Yang.
Hello CULT&RAIN community, please read the following post with an official message about the future of C&R from our founder and CEO, George Yang. 🙏❤️🙏 pic.twitter.com/Suhesmr1o0
— Cult & Rain (@cultandrain) December 6, 2023
The Journey of Cult & Rain
Cult & Rain made its debut in January 2022 during the peak of the non-fungible token (NFT) and metaverse boom.
George Yang, a fashion veteran with experience at renowned brands like John Varvatos and Cerruti Paris, envisioned merging his passion for sneakers with blockchain technology.
The original concept involved tracking sneaker ownership from factory to consumer using blockchain.
However, investor encouragement led Yang to delve deeper into the metaverse, resulting in the creation of NFTs tied to physical luxury fashion sneakers.
This innovative approach allowed Yang to self-fund the project, even though it meant using his savings.
The Metaverse Expansion and Cultr World
In May 2022, Yang expanded Cult & Rain’s presence in the metaverse with the development of “Cultr World.”
This photo-realistic metaverse served as the brand’s social club, providing a space for users to interact and attend events in the Cultr Lounge.
Users could also make purchases through the Cultr Shop. The concept officially launched in November 2022.
The company continued its exploration of Web3 with the introduction of the “Drop 002” phygital collection in partnership with Ltd.inc and DressX.
This collection featured exclusive physical luxury items paired with blockchain-based digital assets.
The Decline of Web3 Interest
Unfortunately, the closure of Cult & Rain aligns with a broader trend of fashion and retail companies stepping back from Web3 spaces.
The once-promising metaverse, hailed as the “future of fashion,” has seen a substantial decline in recent months.
Events like Metaverse Fashion Week witnessed a 76% drop in attendance, reflecting a diminishing consumer interest in metaverse technology.
Web3-related litigation, such as the lawsuit against Sotheby’s Holdings Inc. and others over the promotion of Bored Ape Yacht Club NFTs, further contributed to the skepticism surrounding the Web3 landscape.
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