Announcing its closure on Friday, NFT startup Recur revealed that its Web3 platform is gradually winding down, unable to endure the challenges of the crypto downturn. This comes despite the platform’s association with prominent brands like Hello Kitty and Nickelodeon, whose IP it hosted.
In the coming months, Recur’s platform will progressively lose its essential functionalities, as detailed in a blog post by the company. This includes the capability for users to retrieve NFTs from Recur, convert stablecoin balances into cash, and engage in collectible trading on marketplaces hosted by Recur.
“We recognize that this decision has been a challenging one,” the company expressed on Twitter, alluding to “unexpected obstacles and shifts in the business environment.”
Recur’s announcement echoes recent difficulties encountered within the NFT space, as companies grapple with a waning interest in digital collectibles. Last July, Recur embarked on an ambitious NFT venture alongside Hello Kitty and Friends, but its aspirations were halted just a little over a year later.
During that same July, Recur highlighted an “unprecedented demand” for its TV Packs featuring Nickelodeon character profile-picture (PFP) NFTs like Tommy Pickles from “Rugrats.” However, Recur announced that pack openings would be discontinued come November.
Established in 2021, Recur positioned itself as a provider of Web3 “building blocks” for other businesses. Its platform facilitated the creation of in-game assets, loyalty programs, and digital collectibles employing NFTs, as stated on its website.
Recur’s decision follows closely after Nifty’s, a social network turned Web3 creators portal, also unveiled its shutdown plans. Notably, Nifty’s had partnered with significant media titles such as “The Matrix” and “Game of Thrones.”
Having minted over 380,000 NFTs via Recur, the company revealed that it has devised strategies to ensure the continuity of various digital collectibles.
Recur has disclosed plans to transfer metadata and media associated with its NFTs to the InterPlanetary File System (IPFS), a decentralized file-sharing network developed by Protocol Labs. Additionally, other assets will find their hosting on Filecoin’s network, according to Recur’s announcement.
In December 2021, Recur introduced the Recur Pass during a time-limited, 24-hour sales window. This pass, priced at $300 and sold as an NFT, offered the advantage of resale and granted holders early access to forthcoming NFT drops, along with other perks.
In February of the following year, a Recur Pass fetched a substantial $88,888, as noted in a Twitter statement from Recur. Presently, the least expensive Recur Pass listed on OpenSea is priced at 0.001 ETH, equivalent to around $1.69.
Towards the end of 2021, Recur’s valuation reached $333 million after the company announced securing $50 million in Series A funding. This funding round was spearheaded by Digital, an investment fund associated with the family office of billionaire hedge fund manager Steve Cohen, who holds a majority ownership in the New York Mets.
Notable names also participated in a $5 million seed funding round earlier in that same year. Participants included investor and NFT creator Gary Vaynerchuk, Tyler and Cameron Winklevoss of Gemini, and Ethereum co-founder and ConsenSys founder Joe Lubin. (ConsenSys maintains editorial independence in its funding of Decrypt.)