Popular Web3 platform Recur to shut down its NFT platform despite $50 million raise

Recur, a prominent Web3 platform known for hosting big-name IPs like Hello Kitty and Nickelodeon, announced the discontinuation of its platform on August 18. Despite raising $50 million and being valued at $333 million in late 2021, the company cited unforeseen challenges and shifts in the business landscape as the reason for its closure.

Founded in 2021, Recur had embarked on ambitious projects, including a “jet-setting NFT experience” with Hello Kitty and Friends. The platform was used for creating in-game assets, loyalty programs, and digital collectibles leveraging NFTs. However, a downturn in the popularity of digital collectibles and other unforeseen challenges led to the company’s decision to wind down its operations.

What happens to users’ assets?

Users concerned about their balances can cash out using the USDC feature on portal.recur.com until a stipulated date, and balances, including top-ups, can be withdrawn starting August 31. Those owning NFTs on Recur have been advised to transfer their assets to their preferred self-custodial wallets before November 16, as transfers across different blockchains will no longer be feasible.

Recur also plans to move all NFT media and related metadata to the InterPlanetary File System (IPFS) by November 22, 2023. This decentralized storage protocol will ensure continuous retrievability of data, even in Recur’s absence, with assets being hosted on the Filecoin decentralized storage network. Unopened packs post-November will persist as NFTs, but their opening will be restricted.

The future of projects both “Powered by Recur” and “Built on Recur” remains in the hands of their respective communities and brands. Some might opt for transferring full ownership of their smart contracts, while others may resort to IPFS for ongoing accessibility.

Recur’s closure follows a similar move by Nifty’s, a social network turned Web3 creators portal, which also announced its shutdown. With over 380,000 NFTs minted through Recur, the firm’s decision to migrate metadata and media to IPFS and Filecoin’s network ensures that various digital collectibles will live on.

Recur’s sudden end, despite significant funding from notable names like investor Gary Vaynerchuk, Gemini’s Tyler and Cameron Winklevoss, and Ethereum co-founder Joe Lubin, serves as a stark reminder of the unpredictable nature of the crypto industry. 

From Zero to Web3 Pro: Your 90-Day Career Launch Plan