NFT Startup Glass Ends Development After $5M Funding
Glass, an NFT startup that aimed to revolutionize video monetization, suspends development after securing $5M in funding due to a lack of market demand.
Glass, an ambitious NFT startup that aimed to revolutionize video monetization, recently announced its decision to suspend development, a mere year after securing a significant $5 million in funding.
Founded in 2021 by Chicago University alumni Varun Iyer and Sam Sand, Glass emerged with a mission to monetize NFT videos. The platform was designed to empower content creators, allowing them to expand their partnerships and directly engage with their fans. Unlike traditional platforms like Instagram, YouTube, and TikTok, which monetize based on views, Glass offered a unique proposition: fans could determine the monetary value of videos based on quality.
In its operational year, Glass reported impressive numbers, generating more than $1 million from content creators and an additional $100,000 from revenue splits from the creators’ NFTs. Notable artists like Kygo and Timbaland even collaborated with the company.
Glass wasn't static in its approach. Recognizing the dynamic nature of blockchain technology, the founders transitioned Glass from the Solana blockchain to the Ethereum Blockchain, aiming for a cheaper and faster experience. The platform's features were expansive, integrating creator profiles, a built-in secondary marketplace for NFT trading, and allowing fans to view the growth of their investments.
Despite the initial promise and the vision behind Glass, the co-founders took to X (formerly known as Twitter) to announce the suspension of the platform's development. The primary reason cited was a lack of sustainable market demand for NFT videos. This revelation was surprising, especially considering the startup's recent fundraising success, having secured $5 million from notable investors like 1KX and TCG Crypto.
We've decided to end active development of Glass. — varun (@varuuniyer) September 8, 2023
The crypto market, especially the NFT sector, has been experiencing a bearish trend. Even renowned NFTs like Bored Apes witnessed decreased trading volumes. For startups like Glass, which hadn't fully established their foothold, the market downturn proved detrimental.
Glass's model was innovative, allowing fans to buy videos as NFTs or collect free-to-watch videos. However, the bear market underscored the challenges of sustaining such a model, especially when the demand for video NFTs disappeared.
While the development of Glass's protocol has been halted, the NFTs created on the platform will continue to exist. The founders have assured that these NFTs will remain accessible on the protocol and website. However, the cessation of work on the protocol might impact its future development.