Superdao, a platform founded to assist with the development of decentralized autonomous organizations (DAOs), said it would shut down operations due to unprofitable returns and refund investors.
The platform raised over $10 million in 2022 and supported over 2,000 DAO launches.
Superdao will leave the market
Superdao CEO Yury Lifshits announced plans to close operations, stating that providing specialized crypto infrastructure is not a profitable project because the cryptocurrency industry is too small.
“It became clear that the crypto industry itself is becoming much smaller than its initial ambition (“the new Internet”) and specialized tools for crypto companies are unlikely to produce risk-scale results.”
The platform, which launched in 2021, raised $1 million in the same year in a pre-seed round and another $10.5 million in January 2022 in a seed round led by SignalFire to build an all-in-one DAO platform that allows the start of projects. a DAO with ease.
While the company supported more than 2,000 projects, most of them were short-lived, leading to the underlying platform becoming an unsustainable business.
Having failed to gain a foothold in DAO infrastructure services, Superdao moved into a wallet aggregation tool, which Lifshits says was used by major crypto companies.
Despite the adoption of its wallet aggregation tool, the series of crashes that have occurred in the cryptocurrency industry, along with the ongoing winter, have caused the company to not make a profit with its specialized crypto services.
According to Lifshits, the company will refund investors, stating that “both the team and capital can generate better results elsewhere.”
“While we conclude that specialized crypto infrastructure may not be able to generate risk returns, we still believe in the positive impact of the crypto industry and the companies that serve end users.”
Meanwhile, similar companies such as Aragon announced in August the launch of the Aragon OSx modular protocol and its application on Coinbase’s ethereum layer 2 solution, Base, for users to launch their DAOs.
crypto Bear Market Declines Continue to Pile Up
Superdao became the latest cryptocurrency company to close amid the prolonged cryptocurrency bear market, which has continued to impact business operations across all industry sectors.
As previously reported by CryptoPotato, decentralized financial platform Yield Protocol announced that it would cease operations, citing low demand and regulatory hurdles. RECUR, a non-fungible token (nft) platform, will also close as a result of the bear market.
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