Recur, a leading NFT platform that had partnered with major brands like Hello Kitty and Nickelodeon, announced that it would be shutting down its Web3 platform. This decision came as a surprise, as the company had recently raised $50 million in funding and was valued at $333 million.
Recur quickly became a major player in the NFT space in 2021, offering businesses innovative Web3 “building blocks” that could be used to create in-game assets, digital collectibles, and loyalty programs. In July 2022, Recur launched a “jet-setting NFT experience” featuring beloved characters from Hello Kitty and Friends, and their TV Packs, which contained Nickelodeon character profile-picture NFTs, were also met with strong demand. However, just over a year after its launch, Recur’s fortunes began to decline. The platform will gradually lose its core features, including the ability to withdraw NFTs, cash out stablecoin balances, and trade collectibles on Recur-hosted marketplaces.
In late 2021, Recur announced that it had been valued at $333 million following a successful Series A funding round led by Digital, an investment fund backed by billionaire hedge fund manager Steve Cohen. The $5 million seed funding round had also included participation from prominent figures such as NFT creator Gary Vaynerchuk, Gemini’s Winklevoss twins, and Ethereum co-founder Joe Lubin.
Recur’s decision to shut down was not made lightly, as the company stated on Twitter. The volatile NFT market has had a negative impact on many platforms, including Nifty’s, a social network that has transformed into a Web3 creator portal. Recur’s departure highlights the significant challenges that even well-funded businesses face in the ever-changing NFT landscape. The shutdown raises questions about the long-term viability of NFT platforms and the factors that contribute to their success or failure.
Even though Recur is shutting down, the company is still committed to preserving its digital collectibles. They plan to move the metadata and media for their NFTs to the InterPlanetary File System (IPFS), a peer-to-peer file-sharing network created by Protocol Labs. Other assets will be stored on Filecoin’s network.
This strategic move highlights the importance of decentralized file-sharing networks in protecting digital collectibles and the value they hold for their owners. It emphasizes the need for reliable solutions that can keep digital assets safe and accessible, especially in the event of platform closures.
Recur’s sudden closure, despite significant investments and high-profile backers, is a cautionary tale for the NFT industry. It is a stark reminder of the market’s volatility and the importance of being agile in these unpredictable waters.
The decision to use decentralized networks like IPFS to protect assets shows that best practices for maintaining digital value are evolving. As the NFT sector continues to change, Recur’s story may also serve as a guide for future strategies and methods in the ever-changing industry.
