Key Takeaways :
- Superdao has announced that it will be shutting down
- Despite supporting 2,000 DAO launches, most projects were short-lived, making the platform unsustainable as a business.
In the midst of the enduring crypto winter, the blockchain community witnesses another project gracefully bow out. Superdao, a platform catering to decentralized autonomous organizations (DAOs), has recently made the decision to gradually conclude its operations while ensuring the return of remaining funds to investors.
This move marks the end of a venture that initially garnered attention by securing $10.5 million in its seed round in 2021, with notable investments from SignalFIre, Circle, and One Block Capital.
Superdao began with ambitious dreams, even considering advertising during the 2022 Super Bowl, only to be outshone by the likes of FTX and Crypto.com, who clinched multi-million dollar deals for themselves.
In 2022, Superdao underwent a significant shift in strategy, focusing on developing growth and analytics tools for established Web3 projects. However, it became increasingly apparent that crafting specialized tools for crypto enterprises might not yield the substantial returns desired by venture-scale investors.
Notably, the company confirmed its intention to return the remaining funds to investors, although the exact amount remains undisclosed. Superdao founder Yury Lifshits stated,
“With this view in mind, we decided to return the substantial remaining funds to investors and wind down operations. We believe that both the team and the capital can create bigger outcomes elsewhere.”
The crypto industry’s grand aspirations of becoming the “new internet” have, in reality, dwindled to a much smaller scope. Superdao concluded that crafting specialized tools for crypto companies, once seen as a path to substantial venture-scale success, was unlikely to meet those lofty expectations, as stated in their official announcement.
While SuperDao had supported a substantial 2,000 DAOs, the harsh reality was that the majority of these newly established DAOs had fleeting lifespans. This transience rendered the fundamental business model unsustainable.
While Superdao concluded that specialized cryptocurrency infrastructure might not yield venture-scale returns, the company continues to maintain faith in the positive impact of the crypto industry and the firms that cater to end-users. Certain aspects of their work will be released as open source, and they have plans to provide a comprehensive breakdown of the key lessons they’ve acquired.
