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Non-fungible token (NFT) marketplace Recur will soon be deprecated after a prolonged market slump that forced other companies to strengthen their business through community efforts. Starting on Nov. 9, the platform will no longer accept NFT deposits and will send any remaining media and metadata to the Filecoin network.
Customers must withdraw NFTs and top-up balances into self-custodial wallets before Nov. 16. After that, they won’t be available from the Recur marketplace.
NFT Market Slump Claims RECUR and Nifty’s Marketplace in Quick Succession
Valued at $333 million in 2021, Recur rode the last bull market that saw NFTs garner mainstream attention. Digital, an investment company backed by the family office of hedge fund mogul Steve Cohen, led Recur’s Series A funding round with a $50 million investment.
After targeting college sports collectibles, the company partnered with ViacomCBS to offer NFTs from CBS, MTV, Showtime, Paramount Pictures, BET, Nickelodeon, and Comedy Central. Its marketplace offered chain-agnostic NFTs in exchange for cryptocurrencies and traditional payment cards.
What exactly is an NFT? Read our handy guide here.
Earlier this month, the Web3 creator portal Nifty’s confirmed its imminent shutdown. Backed by billionaire Mark Cuban and Joseph Lubin of ConsenSys, the company raised $10 million in startup funding.
Initially, it offered NFTs from Space Jam, a 1996 film from Warner Bros., and later expanded offerings to include intellectual property from The Matrix and Game of Thrones. Amid widespread ridicule, the company pivoted to a Web3 content-creation platform.
Bear Market Forces Companies to Rethink Community
The NFT market has slumped since the heady days of 2021. Back then, individual pieces could be bought for multi-million dollar sums.
However, the realities of high US interest rates and the bear market caused by major crypto firms’ collapses have slashed some collections’ values. Despite attracting multi-million dollar price tags in 2021, individual NFTs from Bored Ape Yacht Club now sell for less than $50,000.
Long-term, NFT businesses are creating real-world utility and strengthening communities to stay afloat. Doodles, the company behind an NFT collection with the same name, recently launched a pop-up experience with family company Camp.
Yuga Labs, the company behind Bored Ape Yacht Club, recently unveiled a new “Made for Apes” badge that NFT owners can use to commercialize their NFT’s IP. It will also hold ApeFest, a physical community gathering in Tokyo later this year.
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