Sudden Halt in Development
Glass Protocol, the startup aimed at enabling creators to monetize videos through non-fungible tokens (NFTs), has unexpectedly ceased its ongoing development. Despite a considerable funding acquired previously, the initiative seems to have hit a roadblock, facing sustainability issues in the video NFT market.
Insight into the Decision
Co-founders Sam Sends and Varun Iyer took to X (formerly known as Twitter) to disclose the cessation of the project’s developmental phase. The team highlighted the existing challenges in fostering a sustainable demand for video NFTs. While the exact reasoning remains partly veiled, the crux of the decision pivots around unsatisfactory market response to video NFTs despite experimenting with various purchase models and user experiences.
A Look Back
Incepted in 2021, Glass Protocol harbored ambitions of sculpting a Web3 ecosystem leveraging blockchain technology to facilitate direct engagements between creators and communities. The LA-based startup had garnered substantial backing, amounting to $5 million, in a collaborative funding round led by TCG Crypto and 1kx.
The venture also marked considerable successes, generating about $1 million in creator revenues and reporting a self-revenue of around $100,000 from NFT sales. Initially rooted in the Ethereum network, Glass transitioned to the Solana platform intending to expand its creator base to 10,000 from an existing community of over 100 creators.
NFT Market Trends
The NFT sphere is simultaneously witnessing a marked escalation, recording an uptick in transactions and average sale values. This surge, nevertheless, brings with it a rise in wash trades, pointing to complex market dynamics and the need for cautious optimism in the sphere.
Though development is on a pause, the Glass platform, protocol, and the existing NFTs will continue to be functional and safeguarded. Sends and Iyer shared that they are in the process of identifying potential avenues within the crypto landscape for their next venture. The exact contours of this “pivot” are yet to be unveiled, leaving followers and enthusiasts in a mode of eager anticipation.
As the Glass Protocol navigates through uncertain waters, the industry keenly observes potential shifts in the strategy and trajectory of the startup. It remains to be seen whether Glass can resurrect with a renewed vision in the dynamic crypto space.