Cardinal protocol users have until August 26th to complete all of their withdrawals.
A year after securing $4.4 million in funding to augment the utility of non-fungible tokens (NFTs), Solana's Cardinal protocol has announced it will cease operations due to the prevailing economic conditions.
Serving as an infrastructure provider, Cardinal Labs was committed to enhancing NFT use cases on the Solana network. The organization provided essential tools such as protocols and software development kits (SDKs) developed for staking, subscriptions, rentals, royalties, and trading.
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In line with its wind-down plan, the company will stop parts of its operation as early as July 19th. These services include the creation of staking pools, management of tokens, NFT rentals and rental extensions, social media handles, and new deposits.
Users are expected to complete their withdrawals by August 26th, marking the end of the two-month notice period.
In a series of tweets, the team at Cardinal admitted to the difficulties they faced while operating in this harsh macroeconomic climate.
We’ve done our best to navigate this incredibly difficult macroeconomic environment since we began building 18 months ago, but like for many others, it has been challenging.
The company also expressed concerns over the limitations of NFT-based products.
In July 2022, a seed funding round led by crypto venture firm Protagonist and Solana Ventures raised $4.4 million for Cardinal. Contributors included Animoca Brands, CMS Holdings, Delphi Digital, and Alameda Research, which is affiliated with the now-defunct crypto exchange FTX.
However, a spokesperson for Cardinal indicated that Alameda's investment was a minor part of the round and did not contribute to the protocol's financial woes.
In other Solana-related news, the Solana Foundation has recently refuted the US Securities and Exchange Commission's (SEC) claims that its native cryptocurrency, Solana (SOL), is security.
