Crypto Industry Shutdown Wave: What It Means for Users and Projects
The crypto industry is witnessing a wave of shutdowns, with BitMEX and Satori Finance being two notable examples. POAP's departure has been particularly poignant for many users who attended conferences and meetups, as they may have accumulated non-liquid POAPs in their wallets.
These projects didn't fail due to hacking attacks or fund losses but rather because of a lack of sustainable business models. This is a new reality in the industry, where projects are being shut down even after raising funds and gaining traction.
The shutdown of these projects raises questions about the viability of existing crypto companies and their ability to generate revenue beyond fundraising cycles. The fact that some prominent players like BitMEX have been operating for over 11 years but still couldn't sustain themselves is a stark reminder of this challenge.