- Solana NFT infrastructure provider Cardinal has announced that it’s shutting down due to unstable market conditions
- The platform revealed that it has already started the winding down process and users should withdraw assets before August 26
- Some of its services like NFT rentals will go offline mid-next month
Solana NFT infrastructure provider Cardinal has announced it’s shutting down due to unstable market conditions. Although some of its operations like NFT rentals will go offline by July 19, Cardinal users have until August 26 to withdraw their assets. The announcement comes a few months after popular NFT projects DeGods and Y00ts switched from Solana to Ethereum and Polygon.
Crypto Maximalists Have Refused to Let Go
In a Twitter thread, the project said that it has tried but failed to wade through an “incredibly difficult macroeconomic environment.” Being in operation for close to two years, the Cardinal team noted that digital collectibles have come a long way but they are yet to free themselves from the hands of “crypto maximalists.”
Product market fit continues to be difficult to find, and the reality is that members of our team are feeling the itch to explore other pursuits.
— Cardinal (@cardinal_labs) June 28, 2023
According to the project, the most challenging part has been finding a “product market fit,” adding that the lack of a clear path ahead has seen the team itching to “explore other pursuits.”
Product market fit continues to be difficult to find, and the reality is that members of our team are feeling the itch to explore other pursuits.
— Cardinal (@cardinal_labs) June 28, 2023
The team also noted that they had hoped that blockchain technology would be adopted by other industries at a faster rate, something that unfortunately feels miles away from happening.
Although some of its investors include Alameda Research, a company associated with the troubled FTX exchange, the team has maintained that the FTX saga has nothing to do with the decision to shut down.
Alameda Research’s Contribution was Very Small
A Cardinal spokesperson disclosed that Alameda Research’s contribution during a funding round last July was “very small” to affect its financial health. Cardinal’s decision to wind down comes despite reports that the NFT and crypto markets are recovering from the prolonged bear season that started in May 2021.
With Cardinal shutting down, it’s to be seen whether the move will dilute Solana’s appeal among creators in the web3 space.
