Recur, the NFT startup once valued at $333 million, has announced that it will be shutting down operations. The company, backed by hedge fund billionaire Steve Cohen, cited “unforeseen challenges and shifts in the business landscape” as the reason for its closure.
Recur, which had received a $50 million investment from Cohen’s investment fund Digital in 2021, had been struggling due to the ongoing crypto winter. The platform had been phasing out its site functions since August and will officially go offline on November 16.
The startup specialized in assisting other companies with custom web3 features, such as brand-specific NFTs, game assets, and loyalty programs. It also developed a royalties feature that allowed artists and creators to earn recurring income from the sales of their content on any NFT marketplace.
Despite partnering with well-known brands like Sanrio and Emoji, Recur was unable to survive the current flatlining NFT market. Similar platforms, such as Nifty’s and Tessera, have also shut down this year due to financial concerns.
Earlier this year, several former employees filed a class action lawsuit against Recur, alleging that the company violated labor laws by carrying out mass layoffs without providing the required 60-day notice. Recur has not responded to requests for comment regarding this matter.
Users of the platform had until August 31 to withdraw their NFTs and cash out any balances from their wallets, as Recur stopped facilitating primary and secondary sales. Any remaining NFTs and their metadata will be moved to the InterPlanetary File System, ensuring that collectibles remain accessible without the need for Recur’s platform.
The closure of Recur serves as a reminder of the challenges faced by startups in the volatile and rapidly changing world of NFTs. As the market continues to evolve, companies in this space must adapt to survive and thrive.
