Aug 21, 2023

NFT startup Recur announced plans to shut down its Web3 platform due to "unforeseen challenges and shifts in the business landscape," according to a recent post on X (formerly Twitter).

Video transcript

NFT platform recur is shutting down despite raising a $50 million series A and having big name partnerships. The NFT startup said on Friday that the platform is unable to weather the chills of crypto winter despite hosting IP of brands like hello, Kitty and Nickelodeon. Over the coming months, users can expect the platform to start losing its core features. So that's going to include um losing the ability for users to withdraw their NFTS cash, stable coin balances and trade collectibles on hosted market place. Is we gonna toss this one off to you when all of these marketplaces popped up? We asked on the show, how many marketplaces do we need? I think all of us predicted that some were going to fall by the wayside nifty also wound down earlier this month. What do you make of the story? $50 million in a series a and and winding down operations this month. Yeah, it's really hard to do business in crypto when we see the prices of these assets go up crazy percentages just like you can't even put a range on some of these uh percentage gains for assets. But then the drawdown typically is 90 plus percent. And then you add in there that you have to have some sort of recurring revenue for your business itself. You have to hire people who expect a paycheck twice a month. You have all these other business costs and it really sucks up. Even if you raise $50 million 100 million dollars, we often see that these companies aren't able to survive because the business structure itself is dependent on this extremely volatile market. If you're not able to cross that t correctly, when they're probably gonna go under. So I, I don't think this is only like limited to the NFT scene. Like we're seeing a lot of companies just either like lay off employees or trim the budgets or like cut expenses or shut down entirely. It's not just limited to the NFT market. I think the NFT market might be like kind of like the, the one we look back on in two or three years and like, dang, that was really hit hard, that was hit harder than all the other parts of that wind down. And it's because it was like the new thing on the block this time, right? Like NFTS were like the speculative mania of this last cycle. And so they're going to be hit the hardest on the way down, but next cycle will probably be something else and NFTS will again, boom, probably not as big and they'll have a wind down that's not as hard as last time we saw that in 2020 with D ID. I went up a lot and then it came down a lot and this cycle D I went up a decent amount, but then it come down quite as hard as the last time. And this will be the same with some other future crypto product, Wendy. Um I just think that this is kind of embarrassing. Like how are you given $50 million and you can't figure it out. And then you also have all of these amazing connections to all of these big brands. Um It seems like some people got really, really big paychecks and things weren't budgeted or done properly. But again, we see this happen a lot in crypto because entrepreneurism is hard and even as much as I love entrepreneurism, I love um non corporate capitalism, it's a very, very, very hard thing and a lot of people aren't able to be the technician and be the manager and do the finances and do the legal. They have to hire people for that. And if you're not well versed and well equipped, it's gonna be pretty complicated myself as an entrepreneur. I still struggle sometimes because it's hard to wear all of these different hats. So I think it's sad. Um But at the same time, I I would need to know a lot more information because it just seems like a really, really missed, missed opportunity especially if you have all those brand contacts. Yeah, I thought at first, uh, the, the, the picture on the decrypt story. It's, it's a, uh, it's a, what's his name? Timmy Pickles. Tommy. Ok, Tommy. There we go. There you go. I thought that they were, I thought the Rug in Rug Rats was suggestive there for a minute, but it wasn't because Rug Rats was actually part of the IP that was minted through the platform. So that's what's sad to me that Rug Rats connection. But it is sad. It is sad to see consolidation play out. And it just goes to show that a lot of big vets in crypto VC have not panned out very well for some of these big uh crypto funds that not real V CS. Oh, some of them fighting words of tough market.

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