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Friday, July 19, 2024

Solana’s Cardinal Protocol To Shut Down Citing Financial Constraints

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Solana's Cardinal Protocol To Shut Down Citing Financial Constraints

Solana's Cardinal Protocol To Shut Down Citing Financial Constraints

  • Withdrawals must be completed by August 26th, according to a Twitter notification.
  • Cardinal claims that Alameda’s investment was negligible.

Almost a year post collecting $4.4M to enhance the usefulness of non-fungible tokens (NFTs), Solana’s Cardinal protocol is shutting its door owing to economic constraints. Withdrawals must be completed by August 26th, according to a Twitter notification.

By providing protocols and SDKs for staking, renting, subscribing, royalties, and trading, Cardinal Labs was an infrastructure supplier committed to facilitating NFT use cases on Solana.

According to the shutdown timetable, some services, such as staking pool formation, token administration, NFT rentals and rental renewals, social media handles, and new deposits, will cease to function on July 19. The deadline for completing withdrawals is August 26th, when the two-month notice period finishes.

Alameda’s Investment Negligible

Seed investment for Cardinal totaled $4.4 million and was headed by Protagonist and Solana Ventures. With participation from Animoca Brands, Delphi Digital, CMS Holdings, and the sister business of defunct cryptocurrency exchange FTX, Alameda Research. Cardinal claims that Alameda’s investment was “a very small piece of the round.” Therefore it did not add to the firm’s collapse.

Pre-seed investment of $750,000 was secured from Neo Ventures in 2021. Over 65,000 NFTs were staked on the protocol as of July 2022, and Cardinal raised a total of $5.2 million over the course of 18 months.

The NFT market seems to be progressively developing, despite the current difficulties. DappRadar has released research stating that Q1 2023 was the greatest quarter for the NFT market since Q2 2022. Intense competition among NFT markets helped keep overall performance good despite a decline in trading volume throughout March.

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