NFT Platform RECUR to Shut Down After Raising $50M
RECUR, a NFT platform that secured $50M in funding and collaborated with industry giants like Nickelodeon and Hello Kitty is shutting down.
The world of Non-Fungible Tokens (NFTs) has been a rollercoaster of innovation, success, and unexpected challenges. Among the platforms that have made headlines, RECUR stands out for its dramatic rise and equally sudden fall. Despite securing $50 million in funding and establishing collaborations with industry giants like Nickelodeon and Hello Kitty, RECUR announced its decision to shut down.
RECUR's journey began with a promising start. Founded in 2021, the platform positioned itself as a company offering Web3 "building blocks" for creating in-game assets, loyalty programs, and digital collectibles leveraging NFTs. Its collaboration with prominent brands and a successful $50 million Series A funding round led by notable investors like Steve Cohen, the Winklevoss twins, and Ethereum's co-founder Joe Lubin marked a valuation of $333 million.
RECUR Platform
The platform's unique offerings and strong backing allowed it to gain traction quickly. The Recur Pass, sold as an NFT for $300, offered holders early access to future NFT drops and other benefits. One Recur Pass even sold for $88,888, reflecting the platform's offerings' high demand and perceived value.
High-Profile Collaborations
RECUR's collaborations with Nickelodeon and Hello Kitty were particularly noteworthy. The platform generated in-game NFTs, loyalty incentives, and other digital items, attracting significant interest. The Nickelodeon-themed TV packs and a "jet-setting NFT experience" with Hello Kitty and Friends were highlights of RECUR's offerings.
These collaborations were not just limited to entertainment brands. RECUR also joined forces with American multinational conglomerate ViacomCBS, now known as Paramount, to offer digital collectibles from mainstream media such as CBS, MTV, Showtime, Paramount Pictures, and Nickelodeon.
Despite the initial success, RECUR faced numerous challenges. The fluctuating NFT market and unforeseen difficulties in the business environment began to take a toll. The ambitious goals met an unexpected deadline just one year in, and the company announced the termination of the Nickelodeon project shortly after its launch.
The prolonged bear market in the NFT sector also played a significant role in RECUR's struggles. With the sector underperforming, the company found it increasingly difficult to continue providing the level of service and dedication that it had always strived to maintain.
RECUR's disheartening decision to cease operations will witness its core features gradually being disabled. This includes preventing users from withdrawing stablecoins, retrieving NFTs, and trading on Recur-integrated marketplaces. The platform has set deadlines for users to withdraw all previously topped-up balances and NFTs to a self-custodian wallet.
To maintain the life of the digital collectibles, RECUR plans to shift its NFT content and metadata to the InterPlanetary File System (IPFS) decentralized file-sharing system. Other digital assets can be moved to the Filecoin network. This transition ensures that users can still access and retrieve their NFTs even after the platform's closure.
