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Unexpected Shutdown Amidst NFT Industry Challenges
Recur, an NFT-focused startup, unveiled its imminent closure plans. Despite securing an impressive $50 million in funding and partnering with major brands like Nickelodeon and Hello Kitty, Recur finds itself succumbing to the unpredictable whirlwind of the crypto domain.
Today, with heavy hearts, we must share some difficult news.
— RECUR (@RecurForever) August 18, 2023
After much contemplation and consideration, we’ve decided to deprecate the RECUR platform, effective November 16, 2023.
Learn more: https://t.co/5NbiTQSAGo
Recur disclosed its strategy for winding down operations in a recent internal blog post. Over the coming months, the platform will gradually phase out its primary Non-Fungible Token (NFT) functionalities. This includes suspending users' ability to retrieve non-fungible tokens, trade on Recur's marketplaces, and cash out their stablecoin balances.
Unforeseen Challenges and Market Shifts
The decision to shut down operations stems from unforeseen market shifts and challenges that Recur faced. The NFT marketplace's unpredictable terrain has proven to be a formidable challenge, as the company on Twitter acknowledged.
Earlier, Recur launched ambitious projects, such as NFT collaborations featuring Hello Kitty and Friends, in July of the previous year. However, these aspirations were met with challenges that ultimately led to their discontinuation.
Similarly, Recur once celebrated the soaring demand for their NFT TV Packs, showcasing beloved Nickelodeon characters like Tommy Pickles from "Rugrats."
From Ascent to Wane
Founded in 2021, Recur rapidly established itself within the NFT arena, providing innovative Web3 "building blocks" for businesses. Following a Series A round led by Steve Cohen, a billionaire hedge fund magnate, the company's valuation soared to $333 million in 2021.
With the help of notable figures such as NFT creator Gary Vaynerchuk, Gemini's Winklevoss twins, and Ethereum cofounder Joe Lubin, the platform secured $5 million in seed funding. This empowered platform facilitated the creation of in-game assets, digital collectibles, and loyalty programs through NFTs. In the same year, Recur reached new heights with the launch of the "jet-setting NFT experience" featuring iconic characters from Hello Kitty and Friends.
However, Recur's departure mirrors the challenges experienced by other platforms in the turbulent NFT market. Notably, Nifty’s, a social network turned Web3 creator portal, also announced its cessation on Aug. 3.