On Friday, Recur, a startup in the Non-Fungible Token (NFT) space, announced that it would be discontinuing its Web3 platform due to the difficulties of crypto winter. Despite having big names like Hello Kitty and Nickelodeon using its services, Recur’s platform will gradually lose certain features, such as withdrawing NFTs, exchanging stablecoins for cash, and trading on Recur marketplaces throughout the coming months.
Recur acknowledged the difficult choice it had to make in a candid blog post, citing unforeseen difficulties and changes in the commercial environment as the motivating factors behind the discontinuation of its platform.
Recur’s decision to stop their NFT enterprise shows the recent struggles that the digital collectible industry is facing. Nearly a year ago, Recur began a project in collaboration with Hello Kitty and Friends to create a unique NFT experience. Unfortunately, they have had to put this plan on hiatus over the last twelve months.
Last year, Recur noted a surge in demand for its TV Packs containing profile-picture (PFP) NFTs of Nickelodeon characters. However, the company has now confirmed that pack openings will be disabled in November.
Established in 2021, Recur made itself known as a supplier of core components for Web3 applications that other businesses use. Its platform was developed to make in-game items, reward plans, and virtual collectibles that make the most of NFTs (non-fungible tokens).
It’s interesting to note that Recur’s fate closely resembles that of Nifty, another business that embraced the move to Web 3. Nifty’s recently announced its closure as well. Nifty’s had partnerships with major media properties such as “Game of Thrones” and “The Matrix.”
Despite the setback, Recur wants to make sure that different digital collectibles continue to exist. It plans to move the metadata and media for its NFTs to Protocol Labs’ peer-to-peer file-sharing network, InterPlanetary File System (IPFS). The network of Filecoin will become a home for other assets.
Recur introduced a Recur Pass in December 2021, which was only offered for a brief 24-hour period. This $300 NFT came with additional benefits, including early access to upcoming NFT drops. A Recur Pass once sold for $88,888, compared to the current listing price of 0.001 ETH (roughly $1.69) on OpenSea. The value of these passes has fluctuated.
Following a $50 million Series A funding round led by Digital, an investment fund backed by Steve Cohen’s family office, a billionaire hedge fund manager and the majority owner of the New York Mets, the startup’s value had increased to $333 million in late 2021. Notable investors participated in the earlier $5 million seed funding round, including Cameron Winklevoss, Joe Lubin, and Tyler, co-founders of NFTs, and Ethereum creator Gary Vaynerchuk.
Source: https://www.cryptonewsz.com/nft-platform-recur-shuts-despite-50m-usd-raise-and-big-backers/