Formfunction, a Solana (SOL)-based nonfungible token (NFT) marketplace, has announced its closing up shop after only 13 months of operation amid a slump in Solana NFT prices and trading volumes.
On March 15, Formfunction announced it is “shutting down” on March 29 saying it “cannot continue to operate” after “much discussion and careful consideration.”
We have some sad news to share today—Formfunction is shutting down on Wednesday, March 29th.
This was an extremely difficult decision; however, after much discussion and careful consideration, we’ve come to the conclusion that we cannot continue to operate Formfunction.
— Formfunction (@formfunction) March 15, 2023
The exact reason for closing the platform was not disclosed in the announcement.
Formfunction’s head of community and marketing, known by their pseudonym “Magellan,” tweeted on March 15 that the cofounders and the team will “pivot to a new direction, likely outside of the crypto [and the] SOL space” but did not provide further details.
It is with deep sadness to say that @formfunction is being sunset and closed down as the cofounders and team pivot to a new direction, likely outside of the crypto & SOL space.
A thread with a personal statement & reflections 1/n
— Magellan◎☀️ (@CryptoMagellan) March 15, 2023
Cointelegraph contacted Formfunction’s cofounders — Matt Lim and Katherine Liu — for comment but did not immediately receive a response.
The marketplace’s shutdown comes after its launch just over a year ago on Feb. 3, 2022, according to Magellan over that time it conducted $5 million in sales despite a “brutal bear market.”
Shortly after its launch the platform also raised a $4.7 million seed round in March 2022 led by venture capital (VC) firm Variant Fund and contributions from other VC firms Solana Ventures, Canonical Crypto, Pear VC, Palm Tree Crew Crypto and OpenSea Ventures.
Since Formfunctions launch, the wider Solana NFT space has plummeted in terms of volume and floor prices alongside a drawdown in the price of SOL.
Figures from Solana NFT data aggregator SolanaFloor show its index of the “blue chip” NFTs on the blockchain saw a 75% price drawdown in dollar terms since early February 2022.
The daily number of buyers of Solana NFTs has also seen a slowdown over the past 12 months. According to data from CryptoSlam, daily unique buyers currently…
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