Superdao ceased operations due to lack of profitability

The ongoing crypto winter turned out to be bad for Superdao, leading to the company’s collapse.

Superdao, a platform set up to help decentralized autonomous organizations (DAOs) grow, said the company will shut down operations and will refund investors due to unprofitable returns.

The platform raised over $10 million in 2022 and supported more than 2,000 DAO launches.

Superdao Exit from Market

Superdao CEO Yuri Liveszz Lifshits) announced plans to cease operations and said that providing a dedicated crypto infrastructure is not a lucrative project because the cryptocurrency industry is too small.

"It’s clear that the crypto industry itself has become much smaller than its initial ambition (the ‘new internet’), and that crypto companies’ proprietary tools are unlikely to yield risk-scale outcomes. ”

The platform launched in 2021, raising $1 million in pre-seed funding the same year and $10.5 million in a seed round led by SignalFire in January 2022 to build an all-in-one DAO platform that enables projects to launch and easily create DAOs.

Although the company has supported more than 2,000 projects, most of them have been short-lived, resulting in the underlying platform becoming an unsustainable business.

Failing to gain a foothold in the DAO infrastructure service, Superdao turned to a wallet aggregation tool, which Lifshits claims has been used by leading crypto companies.

Despite the adoption of wallet aggregation tools, a series of major crashes in the crypto industry and the ongoing winter season have prevented the company from making money through its professional crypto services.

According to Lifshits, the company will refund investors, saying that “both the team and the capital can create greater results elsewhere.” ”

“While we have come to the conclusion that a professional crypto infrastructure may not yield risk-reward, we still believe in the positive impact of the crypto industry and companies serving end users.”

Meanwhile, companies like Aragon announced the launch of the modular Aragon OSx protocol and its application on Coinbase’s Ethereum Layer 2 solution, Base, in August for users to launch their DAOs.

Crypto bear market casualties continue to rise

Superdao became the latest cryptocurrency company to shut down amid a prolonged crypto bear market, which continues to impact business operations across all sectors of the industry.

As previously reported, decentralized finance platform Yield Protocol announced it would cease operations, citing sluggish demand and regulatory hurdles. Non-fungible token (NFT) platform RECUR will also be closed due to the bear market.