The world of Non-Fungible Tokens (NFTs) just experienced a tragedy. On April 22nd 2021, Recur, an NFT platform, collapsed after less than a year in operation. Despite having a Godfather in the form of Figment Networks, Recur was not able to survive and ultimately sought protection from the sharks that swim in the digital waters.
NFTs have been rising in popularity for the past few years and 2020 saw a massive increase in the NFT market. A number of startups saw this as an opportunity to create marketplaces for the new, blockchain-based products. One such company was Recur which launched in August 2020 with the backing of Figment Networks.
Figment Networks is one of the most respected players in the NFT space, and they’ve earned the title of “Godfather” of the NFT market. Their influence and experience was thought to be enough to set Recur on the path to success. Unfortunately, it seems that the Godfather NFTs weren’t enough to deliver Recur from its ultimate fate.
It’s unclear what exactly happened to cause Recur’s collapse but there are no shortage of theories as to why the platform went so quickly from success to failure. Some speculate that poor management decisions, lack of financial resources, and a saturated NFT market were all factors in Recur’s downfall. It also appears that there were not enough buyers to sustain the platform and the liquidity of the NFT markets was also a contributing factor. Ultimately, Recur was unable to stay afloat and like so many startups before it, the company ultimately found itself at the bottom of the ocean.
Though the story of Recur’s downfall is a cautionary tale for any companies looking to enter the NFT space, NFTs continue to remain popular and successful. There are still many potential opportunities out there and companies that have the resources and experience to succeed. Nevertheless, it’s still a reminder that having a Godfather NFT may not be enough to prevent a startup from finding an early grave.
