Recur, an NFT firm, said on Friday that it would gradually shut down its Web3 platform owing to the difficulties the crypto market is posing. Despite having ties with well-known companies like Hello Kitty and Nickelodeon, Recur’s Web3 platform was unable to deal with the harsh conditions of the cryptocurrency market.
The company took to X (formerly Twitter) to express the gravity of this decision, emphasizing that it was far from an easy choice.
Established in 2021, Recur positioned itself as a provider of Web3 “building blocks” for other businesses. Its platform enabled the creation of in-game assets, loyalty programs, and digital collectibles that leverage NFT technology.
Today, with heavy hearts, we must share some difficult news.
After much contemplation and consideration, we’ve decided to deprecate the RECUR platform, effective November 16, 2023.
Learn more: https://t.co/5NbiTQSAGo
— RECUR (@RecurForever) August 18, 2023
Unforeseen Challenges Faced By Recur
The closure was attributed to “Unforeseen challenges and shifts in the business landscape” that impeded their ability to maintain the level of service they aimed to provide.
This development follows closely on the heels of Nifty’s, a social network turned Web3 creator portal, which also declared its shutdown. Nifty’s had partnered with notable media franchises like “The Matrix” and “Game of Thrones.”
Having minted over 380,000 NFTs through its platform, Recur assured users that steps are being taken to preserve various digital collectibles.
Over the coming months, Recur’s platform will progressively lose its core functions. This includes the withdrawal of NFTs, cashing out stablecoin balances, and trading collectibles on Recur-hosted marketplaces.
Bitcoin slightly above $26K today. Chart: TradingView.com
Timeline For Balance Withdrawals And NFT Transfers
The company has announced that starting from August 31, all transactions on both the primary and secondary markets will no longer be available. Additionally, on November 16, the remaining functions on the website, including NFT withdrawals and USD Coin (USDC) cash outs, will be disabled.
To retain access to their NFTs, users are advised by Recur to transfer them to a self-custody wallet before the November 16 deadline.
Additionally, Recur has outlined plans to shift all NFT media along with its associated metadata to IPFS by November 22, 2023. This decentralized storage protocol provides a guarantee of data retrievability, even in the absence of Recur, as assets will find their hosting on the Filecoin decentralized storage network.
After the cutoff date in November, unopened packs will still be considered NFTs, but access to them will be limited. NFT metadata will still be available, though, because of the switch to IPFS.
The communities and brands behind “Powered by RECUR” and “Built on RECUR” will decide the future of these projects. Some people might decide to transfer full ownership of their smart contracts, but others might decide to use IPFS to keep them accessible over time.
Featured image from Cryptopolitan