The protocol’s closing timeline specifies that some operations will terminate on July 19th and that the withdrawal period will end on August 26th.
After obtaining $4.4 million to increase NFT utility, Solana’s Cardinal protocol is ceasing operations owing to the economy. This draws attention to the collapse of Cardinal Labs, a company that provided infrastructure for NFT use cases on the Solana network.
According to a tweet, withdrawals for the Cardinal procedure must be made before August 26th. This gives users a window of time to get their belongings out of the protocol before it entirely goes away.
On Solana, Cardinal Labs provided protocols and software development kits (SDKs) for staking, rentals, subscriptions, royalties, and trading, among other NFT functionalities. The infrastructure provider sought to increase the NFTs’ usefulness and efficiency inside the Solana ecosystem.
On July 19th, a few Cardinal operations will stop as part of the shutdown timeline. This includes tasks like setting up staking pools, managing tokens, renting out NFTs and extending existing rentals, creating social media handles, and making new deposits. The timeline makes it clear how services will be discontinued gradually.
The Cardinal team realized how difficult the macroeconomic climate was to navigate. Although NFT-based products have gained popularity, they are still mostly used by the crypto maximalist group, suggesting that their potential for market expansion is limited.
In July 2022, Cardinal secured $4.4 million in seed funding from a group of illustrious investors that included Protagonist, Solana Ventures, Animoca Brands, Delphi Digital, CMS Holdings, and Alameda Research. The money was allocated to help Cardinal’s NFT-focused protocols advance and expand.
Cardinal’s total funding reached $5.2 million over 18 months in 2021 with an additional $750,000 in pre-seed funding from Neo Ventures. The large investment demonstrates Cardinal’s initial promise and potential as a provider of infrastructure in the Solana NFT ecosystem.
The NFT market is gradually developing despite Cardinal’s difficulties and the shutdown of its activities. According to a new analysis from DappRadar, the NFT market performed well in the first quarter of 2023, which was the best since the second quarter of 2022. This shows that NFT marketplaces will continue to grow and compete, even though transaction volume slightly declined in March.