Superdao, a platform founded to help with the development of decentralized autonomous organizations (DAO), said it would shut down operations due to unprofitable returns and would refund investors.
The platform raised over $10 million in 2022 and supported more than 2,000 DAO launches.
Superdao to Exit Market
Superdao CEO Yury Lifshits announced plans to wind down operations, stating that providing specialized crypto infrastructure is not a profitable project because the cryptocurrency industry is too small.
“It became clear that the crypto industry itself becomes much smaller than its initial ambition (”the new internet”) and specialized tools for crypto companies are unlikely to produce venture-scale outcomes.”
The platform, which launched in 2021, raised $1 million in the same year in a pre-seed round and another $10.5 million in January 2022 in a seed round led by SignalFire to build an all-in-one DAO platform to enable projects to start a DAO with ease.
While the company supported over 2,000 projects, most of them, however, were short-lived, leading to the underlying platform becoming an unsustainable business.
Having failed to carve a niche in DAO infrastructure services, Superdao pivoted to a wallet aggregation tool, which Lifshits claimed was utilized by leading crypto firms.
Despite the adoption of its wallet aggregation tool, the string of eventful collapses that have happened in the crypto industry, along with the ongoing winter, has caused the company not to make profits on its specialized crypto services.
According to Lifshits, the company will refund investors, stating that “both the team and the capital can create bigger outcomes elsewhere.”
“While we concluded that specialized crypto infra may be unable to produce venture returns, we still believe in the positive impact of the crypto industry and the companies who serve end-users.”
Meanwhile, similar companies like Aragon in August announced the launch of the modular Aragon OSx protocol and its app on Coinbase’s Ethereum layer-2 solution, Base, for users to launch their DAOs.
Crypto Bear Market Casualties Continue to Pile
Superdao became the latest crypto firm to shut down amid the prolonged cryptocurrency bear market, which has continued to affect business operations across all sectors of the industry.
As previously reported by CryptoPotato, decentralized finance platform Yield Protocol announced that it would cease operations, citing low demand and regulatory hurdles. RECUR, a non-fungible token (NFT) platform, will also close down as a result of the bear market.