The cryptocurrency market is unknown for its uncertainty and volatile nature. While some projects touch the peak of success others fail to hold their position for a longer period. The story of a company’s rise and fall is not new to the world of cryptocurrency. One such project that garnered major attention during its early stage was Recur, a prominent NFT platform. The platform amassed $50 million in its series A funding in 2021. However, two years later, Recur is once again at the top of the headlines but with news to declare its shut down leaving the entire crypto community wondering about the reason for its downfall.
Journey of Recur
Recur was a leading NFT platform offering all the tools a business would require to integrate Web3. Known to offer its flexible, global, and intuitive institutional-grade software, the company raised a massive fund of around $50 million in its series A funding back in 2021. The valuation of the company rose to $333 million making it another giant in the world of NFTs (non-fungible tokens). Recurs’ financing was managed by another metaverse-focused investment platform, DIGITAL. With the popularity of NFTs soaring high above, Recur was leading a flourishing business in the cryptocurrency market.
Downfall of Recur
The booming market of NFTs gradually began to cool down affecting several NFT-focused platforms around the globe. The dip in the NFTs sales was experienced by almost all the companies including the major platforms like Ethereum. This decline in the market took a toll on Recur, leading to its most recent decision to shut down the company. The announcement was made public on the 18th of August, 2023 with a gradual wind-down of its operations beginning with disabling the RECUR-powered operations of primary and secondary NFT sales. However, the users are allotted some time to withdraw NFTs to on-chain wallets and cash out balances before the 31st of August this year.
As the process of shutting down the company continues, Recur will disable NFT deposits and other operations like withdrawals and USDC cash-outs starting from November 9, 2023. According to the team at Recur, the NFT metadata and graphical assets will be smoothly transitioned to the InterPlanetary File System (IPFS) to make it retrievable and accessible to all.
About InterPlanetary File System (IPFS)
The InterPlanetary File System (IPFS) is a distributed hypermedia and file-sharing peer-to-peer network. The platform enables multiple use cases because of its open-source nature but primarily focuses on publishing data in a decentralized manner. In the case of Recur, IPFS will allow retrieval of the files by the user without the need for the Recur Platform itself.
The rise and fall of Recur mark another tale of the volatile nature of cryptocurrencies and NFTs. The start-up had once gained immense success and popularity in the market owing to its innovative solution but it could not stand the test of time leading to its downfall. Since the NFT market has been in a bear run, a huge number of projects and platforms have fallen victim to this challenge. Despite the downfall, many analysts believe that the current bear market is a temporary setback and that the NFT market has the potential to evolve in the years to come.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
