Less than two years ago, the NFT company Recur raised $50 million in an investment round. This week, it announced plans to gradually shut down its operation until it is fully closed on November 16th.
Despite hosting brand IPs from popular programs like Hello Kitty and Nickelodeon, Recur —a platform that was established in 2021 to provide the “building blocks” for creating Web3 loyalty programs, NFT collectibles, and in-game assets — is the latest victim of the NFT bear market.
While the news was announced with “heavy hearts,” Recur aims to do right by its users. The company will be transferring all media and metadata to a decentralized storage protocol, the InterPlanetary File System (IPFS), by November. This will give users access to their NFTs after the closure.
As of August 18th, primary and secondary sales of NFTs have been halted on the platform. But users can still transfer NFTs to external wallets and withdraw balances before the end of this month.
NFT deposits will be officially disabled on November 9th, 2023, and any remaining NFTs or USDC balance users have can be withdrawn until November 16th. Afterwards, the website will go offline and Recur will no longer exist.
A few short years ago, the company made headlines for raising $50 million in a Series A funding round led by hedge fund mogul Steve Cohen. In September 2021, the company was valued at $333 million. It also boasted big partnerships, having teamed up with Paramount to create NFTs and digital collectibles for mainstream media sources like MTV, Showtime, Nickelodeon, CBS, and others.
In a statement, the company acknowledged the decision to shutter its doors was not easy, but that the “business landscape made it increasingly difficult” to provide the level of quality they aimed to maintain.
Earlier in the month, Nifty’s, a Web3 platform for creators, also announced that it would be closing due to market conditions and financial issues.
Some Fall While Others Build
Recur’s announcement is certainly sad news for the NFT space. But while some companies are falling in the bear market, others are digging in their heels and building. At Rarity Sniper, we’ve covered several recent articles about brands, companies, and artists forming partnerships and launching new products amidst the market turmoil.
Here are some of the top headlines from August 2023:
- Magic Eden Creates $1M Polygon Creator Fund
- Reebok and VeeFriends Team Up for Limited Edition Sneakers
- Singapore Monetary Authority Unveils $150 SGD Million Web3 Fund
- Unstoppable Domains Unveils Premium Blue Membership for .ENS Domains
- Grimes’ NFT Profits Eclipse Music Career Earnings
- adidas & BAPE Unveil Limited NFT Sneaker Drop
- Polygon Partners with South Korea’s Telecom Giant SKT
No one can deny that the extended bear market has taken its toll on NFT creators, collectors, and many Web3 platforms. The loss of Recur this week is more evidence of that sad fact.
But it’s not all bad news in the NFT space. In fact, from our vantage point, it appears some folks in Web3 are just getting started. At Rarity Sniper, we’ll be hear to enjoy the ride — however bumpy it may be — and report back to you with the latest updates.