RECUR, a non-fungible token (NFT) company that raised $50 million in an investment round nearly two years ago, has become the latest victim of the current bear market.
Over the weekend, the NFT platform announced that it plans to gradually shut down its operations starting this month, with a full business closure slated for November.
At the time of the announcement, RECUR said it had halted primary and secondary sales on August 18. However, the firm will allow users to transfer their NFTs to external wallets and withdraw all redeemable balances accrued before August 31.
According to the company, RECUR will disable NFT deposits by November 9, 2023. Traders will have until November 16 to withdraw their remaining NFTs and USDC from the platform, and users will be unable to access the website as it is slated to go offline at the withdrawal deadline.
The firm further noted that all NFT media and attributes would be transferred to the InterPlanetary File (IPFS), a decentralized storage protocol that ensures data retri by November 22, and RECUR will cease to exist.
According to RECUR, the transfer to IPFS is important as it will allow users to access and retrieve their NFTs even after the platform’s closure.
The decision to shut down its operations comes barely two years after RECUR secured $50 million in a Series A funding round from industry investors such as hedge fund mogul Steve Cohen. The fundraiser saw RECUR hit a market valuation of $333 million in September 2021.
After reaching mainstream due to the bull run two years ago, RECUR joined forces with American multinational conglomerate ViacomCBS, now known as Paramount, to offer digital collectibles from mainstream media such as CBS, MTV, Showtime, Paramount Pictures, and Nickelodeon.
However, due to the prolonged bear market, the NFT sector has been underperforming, thus putting a significant hole in RECUR’s pocket, and the company has decided to shut down.
“This decision has not been an easy one. However, unforeseen challenges and shifts in the business landscape have made it increasingly difficult for us to continue providing the level of service and dedication that we have always strived to maintain,” the firm said.
Meanwhile, RECUR is not the only web3 firm that has decided to wind down operations due to financial struggles. Earlier this month, Nifty’s, a platform dedicated to Web3 creators, announced that it is going out of business due to unfavorable market conditions and financial challenges.
