NFT Marketplace on Solana Platform Formfunction to Shut Down After Raising $4.7 Million
Formfunction, an NFT marketplace platform on the Solana blockchain, is set to shut down its website on March 29, about a year after raising $4.7 million in a seed funding round. The platform had launched in February 2022 to support “one of one” NFT creators on Solana. These unique tokens, known as 1/1 NFTs, are minted as single, unique editions and resemble unique pieces in the traditional art world.
Successes and Shutdown
Formfunction’s success in supporting over 4,000 creators on its platform is notable, with 60% of them having made at least one sale, and over 600 earning at least $1,000. The website added that 70 creators had earned more than $10,000 each during its run. Despite these achievements, Formfunction will be shutting down, and the announcement did not provide reasons for ending the project. In a statement, Formfunction CEO Katherine Liu thanked team members for their efforts and called the decision “extremely difficult.”
Decline in Solana NFT Trading Volume
Formfunction’s announcement comes amid a massive decline in Solana NFT trading volume. The Block’s Data Dashboard shows daily NFT marketplace volume on Solana down more than 70% year-to-date. This decrease in trading volume is a concern for NFT platforms on the Solana blockchain, and Formfunction’s closure is likely to add to worries in the space.
Delisting Items
Creators on the Formfunction platform have been advised to delist their items before March 29. This advice highlights the potential impact of the platform’s shutdown on creators who have been using it as a source of income. It also shows the impact on those who have purchased NFTs on the platform and raises concerns about the liquidity of these assets going forward.
Source: TheBlock
