The Fall of a Pioneer
Recur, once celebrated for its innovative NFT drops featuring popular brands such as Hello Kitty & Friends World, Star Trek Continuum, and others, has announced its shutdown. The company’s NFT collections failed to realize significant sales, marking a steep descent from its 2021 peak when it secured a $55 million investment at a valuation of $333 million.
- Recur was associated with prominent brands like Hello Kitty and Star Trek.
- Company’s NFT collections saw minimal sales.
- Raised $55 million in 2021 with a valuation at $333 million.
Non-sustainable Trading Volume
Even globally recognized IP could not turn Recur into one of the most successful NFT stories. Start Trek Continuum did a mere $527.56K in volume on Recur’s native marketplace. On OpenSea the collection did 1/5th of an Ethereum in trading volume. Similar numbers are seen across all collections from licensed IP by Recur. From Hello Kitty & Friends World ($1.40M) to Nickelodeon ($2.31M).
DIGITAL, a metaverse investment platform steered by Mark Daniel and Benjamin Milstein and backed by Steve Cohen’s family office, was the primary investor in Recur’s financing. Notably, Steve Cohen will also represent DIGITAL on RECUR’s board.
The venture was established by cryptocurrency trading specialist, Zach Bruch, and licensing expert, Trevor George. RECUR aimed to craft new universes where fans could interact, play, and collect NFTs, all while promoting the ideal of decentralized recurring royalties.
Since 2021, Recur has raised an impressive $55 million. Its list of investors is nothing short of star-studded, featuring names like Gemini, Divergence Ventures, Nascent, Gary Vaynerchuk, Courtside Ventures, IOSG Ventures, David Choi, Jason Derulo, Volt Capital, Oxford Ventures, and Steve Cosen, the New York Mets owner. Past investors also include prominent figures and entities like Defi Alliance, Courtside VC, Volt Capital, Joe Lubin, the Winklevoss Twins, Gary Vaynerchuk, Scott Belsky, Hashed, Nascent, Delphi Ventures, JST Capital, Divergence, 640 Oxford, IOSG, CMT Digital, David Choi, Jason Derulo, Scott Lewis, and Chris Hermida.
Recur announced on August 18th that its platform would be progressively deprecated. This FAQ breaks down the critical dates and associated changes:
- August 18, 2023 – Suspension of main transactional activities and disabling of new account creation on RECUR-hosted platforms.
- August 31, 2023 – Further transactional functionalities will cease. Users will be able to start withdrawing any remaining balances.
- November 9, 2023 – Deposits of NFTs into RECUR will be stopped.
- November 16, 2023 – Termination of all residual functionalities, including NFT withdrawals, USDC cashouts, pack openings, and the discontinuation of RECUR-hosted websites.
- By November 22, 2023 – Migration of all NFT media and attributes to IPFS (InterPlanetary File System) to ensure decentralization and permanence.
The FAQ section further explains procedures regarding withdrawal balances, accessing NFTs, NFT metadata accessibility, and the fate of unopened packs after the deadline. Additionally, Recur provided guidance for its brand partners on the next steps post-deprecation and assured that all NFT media and metadata would be safely transitioned to IPFS. There’s also mention of a resolution for users based in Singapore or Australia facing login challenges.
Recur’s downturn is a timely reminder that even pioneers with heavy financial backing can face challenges in the volatile and unpredictable NFT market. As the NFT landscape continuously evolves, companies must remain adaptable, innovative, and attuned to market demands. Recur’s journey, from its meteoric rise to its eventual wind-down, showcases the inherent risks and potential rewards in the burgeoning world of digital collectible assets.