- Platform Closure: Recur, a notable NFT-focused company, is winding down its Web3 platform due to market challenges.
- Big-Name Partnerships: Despite collaborations with major brands like Hello Kitty and Nickelodeon, Recur faced unexpected hurdles.
- Industry Trends: The NFT sector experiences setbacks as demand for digital collectibles wanes; other firms also face closures.
Recur, a prominent player in the NFT sector with renowned partnerships, has announced the imminent closure of its platform.
In a recent announcement, Recur, the NFT startup, revealed its decision to wind down its Web3 platform. This move comes in light of the challenges posed by the cryptocurrency market’s downturn, despite having established collaborations with major brands such as Hello Kitty and Nickelodeon.
Over the forthcoming months, Recur’s platform will gradually phase out its key functionalities, as stated in a company blog post. This includes features like the ability for users to withdraw NFTs from Recur, cash out stablecoin balances, and engage in collectible trading on Recur-hosted marketplaces.
Via a Twitter announcement, Recur acknowledged that the choice to shut down was not made lightly, attributing it to unforeseen hurdles and shifts within the business landscape.
The circumstances surrounding Recur’s closure mirror the recent challenges faced by companies in the NFT domain as they navigate through a decline in the popularity of digital collectibles. Last July, Recur embarked on an ambitious NFT venture with Hello Kitty and Friends, only to find its aspirations grounded a little over a year later.
During the same period in July, Recur emphasized the extraordinary demand for its TV Packs, which featured profile-picture (PFP) NFTs of beloved Nickelodeon characters such as Tommy Pickles from “Rugrats.” However, Recur has now disclosed that these pack openings will be deactivated in November.
Founded in 2021, Recur positioned itself as a provider of Web3 “building blocks” for other businesses. Its platform enabled the creation of in-game assets, loyalty programs, and digital collectibles leveraging NFT technology, according to information on its official website.
Recur’s decision to cease operations follows closely after Nifty’s, a social network turned Web3 creators’ portal, also announced its closure. Nifty’s had secured partnerships with major media titles like “The Matrix” and “Game of Thrones.”
With more than 380,000 NFTs minted via its platform, Recur is committed to ensuring the preservation of various digital collectibles through a strategic plan.
The company has revealed that metadata and media associated with its NFTs will be migrated to the InterPlanetary File System (IPFS), a peer-to-peer file-sharing network developed by Protocol Labs. Additionally, other assets will find a home on the Filecoin network, as outlined by Recur.
In December 2021, Recur introduced the Recur Pass during a limited 24-hour sales window. Sold as an NFT for $300, this pass could be resold and granted holders early access to upcoming NFT releases and other advantages.
Notably, a Recur Pass was sold for $88,888 in February. Presently, the least expensive Recur Pass listed on OpenSea is priced at 0.001 ETH (approximately $1.69).
Towards the end of 2021, Recur achieved a valuation of $333 million following a successful $50 million Series A funding round. The funding was spearheaded by Digital, an investment fund backed by the family office of Steve Cohen, majority owner of the New York Mets and a prominent hedge fund manager.
Prominent figures also participated in an earlier $5 million seed funding round in the same year, including investor and NFT creator Gary Vaynerchuk, Gemini’s Tyler and Cameron Winklevoss, and Ethereum co-founder and ConsenSys founder Joe Lubin. (Disclaimer: ConsenSys provides funding to the independent media outlet Decrypt.)