Phaver, a as soon as promising decentralized social media platform, has officially ceased operations after its native token SOCIAL fell by over ninety 9% since its Token Expertise Tournament (TGE) in September 2024.
The abrupt shutdown erased months of group engagement and developer momentum. Phaver, which aimed to bridge the Lens and Farcaster ecosystems, as soon as had 35,000 day-to-day active customers and over 800,000 downloads. At its peak, the app accounted for 50% of all Lens web site visitors and 20% of Farcaster web site visitors.
DeFi analyst Ignas shared his views on the platform’s collapse, citing a combination of strategic missteps and monetary mismanagement:
“The day past I realized that Phaver used to be shutting down all social media,” Ignas wrote, adding, “I had high hopes for Phaver, which combines the Lens and Farcaster ecosystems.”
The platform’s token birth used to be marred by technical points, including hours-prolonged portal outages that averted customers from claiming tokens. The delays ended in unique FUD (pain, uncertainty, and doubt), undermining individual trust from the outset.
In step with Phaver crew contributors, the venture spent over $1 million to safe listings on five centralized exchanges (CEXs), including Bybit, KuCoin, and Gate.io. No topic this, trading volumes and liquidity failed to meet expectations.
The critical resolution by the Phaver crew not to sell tokens due to the already high FUD all around the tokenization event resulted in an absence of operational funds. “It used to be a mistake,” talked about one aged worker, adding that the resolution left the crew with out sufficient sources to continue operations.
Phaver had raised $8 million at a valuation of spherical $80 million from major backers love Polygon Ventures and Nomad Capital. On the choice hand, the monetary loss ratio and discouraged treasury administration proved fatal. As a Finnish firm, Phaver used to be also legally required to pay its workers for the critical 1-2 month witness interval following the closure announcement.
SOCIAL technically continues to set off exchanges, but its worth has fallen, surprising traders and customers.
*Right here’s not funding suggestion.
