The chill winds of crypto winter continue to impact projects, prompting several of them to take a hard look at downsizing or ceasing operations entirely.
A decentralized content publishing and sharing platform (LBRY) is the latest to succumb to market conditions. The company behind the LBRY blockchain said “there is no way out of this.”
LBRY closes store
in a dark place advertisement, LBRY weighed in on losing the lawsuit before the federal government, saying he owes debts to the U.S. Securities and Exchange Commission (SEC), his legal team, and a private debtor he can’t pay. As a result, his assets, including Odysee, are now under receivership.
As of this statement, all of LBRY’s executives, employees and board members have resigned. They are committed to complying with any outstanding legal obligations, but will not participate beyond those requirements.
The company now fears that the LBRY blockchain, which is decentralized, may also die.
“Decentralization is not magic: it only works if enough people use it. Could LBRY continue to absorb all digital publications as we intended? Could this be the beginning of a descent into darkness? Who knows? It’s not like we’re experts on LBRY.”
LBRY said it will not continue with its appeal against the financial regulator.
The blockchain company had previously revealed its intention to conclude operations in July following a final ruling from the SEC. The regulator had initially requested a fine of $22 million, but later revised it downwards to $111,000 in recognition of LBRY’s financial inability to meet the larger sum.
In September, LBRY filed an appeal with the United States Court of Appeals for the Second Circuit to challenge the final ruling, arguing that the SEC’s verdict was erroneous.
Projects close when winter arrives
Earlier this week, SuperDao, the platform that facilitates community-driven decentralized autonomous organizations (DAOs), revealed its decision to cease operations and refund remaining funds to investors. He cited “lack of profitability” as the reason for his decision.
In its 2021 seed round, the company raised $10.5 million in funding, backed by SignalFire, Circle, and One Block Capital. SuperDao initially aimed to land advertising space at the 2022 Super Bowl, but competitors like FTX and crypto.com landed multimillion-dollar deals before them.
Decentralized financial platform Yield Protocol also announced the closure of operations, citing low demand in addition to regulatory hurdles. He revealed that he had reached a conclusion after extensive deliberation with various stakeholders.
The bear market did not spare the nft platform RECUR, which quit after $50 million in an investment round almost two years ago.
Unfavorable market conditions and financial challenges also affected Nifty’s, a platform dedicated to Web3 creators, which declared closure of its operations in August. The team had strategically shifted its focus toward creating a platform designed for Web3 creators and, to that extent, was actively seeking the capital needed to sustain its efforts.
However, the investment prospects they sought did not materialize, pushing the company to the limit of its financial capabilities.
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