Solana-based NFT protocol that raised $4 million in investment has closed
Date: 2023-06-30 Author: Karina Ziganova Categories: BLOCKCHAIN
Cardinal Labs, a provider of NFT solutions based on the Solana network, announced the closure due to the uselessness of its services in the cryptocurrency market
The Cardinal Labs protocol, which provides technological solutions for the development of non-fungible tokens (NFTs) based on Solana, has announced its closure. The project announced the decision on Twitter. It is reported that the project was never able to find enough customers to reach payback.
"While we've seen some use of our products for staking, [NFT] rentals, and product personalization, we still feel like the products are stuck in the context of the crypto-maximalist community," Cardinal Labs said.
The developers of the protocol also doubted that the blockchain is being actively implemented on a global scale. As stated in the project, the mass use of decentralized ledger technology is "still far away." The source code of the project will remain open on GitHub after closing, Cardinal Labs added. The project called on all users and partners of the project to withdraw cryptocurrency funds from Cardinal Labs wallets. By the end of summer 2023, the project will shut down the website and curtail activity on the Solana network.
Founded in 2021, the Cardinal Labs project has raised nearly $4.5 million from four investors. According to Crunchbase, Solana Ventures, Delphi Ventures, CMS Holdings and the controversial hedge fund Alameda Research invested in the startup.
This is the third Solana-based project since the beginning of 2023 that has publicly curtailed activity on the network. Against the backdrop of frequent technical problems with the network, NFT developers moved to other sites, and DeFi protocols decided to close altogether. Recall that in April, the Friktion decentralized finance protocol based on the Solana network urged users to withdraw money due to the closure of the project. What exactly caused the closure is still unclear.
In March, NFT collection Blockasset Athlete abandoned Solana, choosing Chiliz as its new partner. Prior to that, other NFT collections DeGods and y00ts also left Solana in favor of Polygon.
