Recur, a non-fungible token (NFT) platform, has made the decision to shut down less than two years after raising $50 million in a series A funding round. The closure process will occur in phases, marking the end of an era for the NFT platform.
Recur Phased Closure and Key Dates
The company’s announcement outlines a gradual shutdown process. Starting from August 18, 2023, Recur will disable primary and secondary sales. Additionally, the creation of new user accounts has been halted. By November 16, 2023, all remaining site functions will come to a complete stop.
User Guidance on Withdrawals and Balances
Recur has provided users with instructions on how to proceed with withdrawing their NFTs and cashing out any redeemable balances they may have. In this shutdown, one notable aspect is that they are planning to migrate NFT metadata, which directly minted on Recur, to the InterPlanetary File System (IPFS). This decentralized storage protocol ensures that users’ NFT-related data will remain retrievable even after the platform ceases operation.
Recur Reasons Behind the Closure
Recur had accomplished fundraising triumphs. They secured $5 million in a seed round and acquired $50 million in Series A funding at a valuation of $333 million. However, they decided to shut down due to unexpected challenges and changes in the business environment. The reasons behind this choice haven’t been openly revealed. The decision showcases how intricate and dynamic the NFT market can be.
NFT Market Trends and Decline
The announcement comes in the context of a broader downturn in the NFT market. Over the past year, the total value of NFT sales on the Ethereum blockchain has witnessed a significant decline. From its peak of over $4.9 billion in January 2022, NFT sales have dropped to approximately $272 million in July 2023, according to data from CryptoSlam. This market trend likely played a role in Recur’s decision to wind down its operations.
Recur is getting ready to end its journey. The NFT community is closely observing. The platform has given guidance on how to withdraw and manage users’ NFT assets. Users are following this guidance.
