NFT Renting Platform Rentable Winds Down Operations
NFT renting platform Rentable is winding down its operations after attempting to secure new funding, the platform has announced.
Rentable, a nonfungible token protocol, says it is shuttering its operations after failing to arrive at a “product market fit.”
It is still possible to make withdrawals from the platform but the rentals functionality has already been disabled. Users can make withdrawals until October 13 and after this, Rentable will activate emergency withdrawals and send the tokens to their owners.
Rentable was founded by Emiliano Bonassi with a unique business model. Instead of focusing on NFT ownership, it focuses on renting out NFTs that would probably be sitting idle in a wallet somewhere.
Metaverses and blockchain-based games often requires new users to own highly valued NFTs 💵
It limits the audience of these platforms since the high entry level price 🚧
NFTs usually remaining idle in the owner wallet hence underutilized in the platform 📉
— emiliano.eth (@emilianobonassi) October 24, 2021
Bonassi says Protocol provided its NFT renting service to Meebit holders, Decentraland users as well as Lobster DAO which enabled owners to earn yield from their NFTs without the risk of liquidation.
According to Bonassi, the Rentable platform was to be agnostic and allow NFT rentals without having them tied up to any specific use case. Rentable V2 allowed all types of dApps to provide rentals to users without the need for integrations. Bonassi says Rentable got rid of all sorts of barriers for platforms.
However, Bonassi says that Rentable was unable to secure funding and had “close to zero traction.”
Bonassi says that Rentable had the possibility of raising funds but has opted to first test the product market fit since the company had the “capital for building and auditing.” The company, therefore, opted to shut down operations because it was unable to find that product market fit after several pivots.
NFTs have seen a plunge in fortunes like the broader crypto market. A sharp turn in fortunes from its highs in late 2021.
The Bored Ape Yacht Club’s (BAYC) NFT floor price plummeted from 152 Ethereum to 105 Ethereum and is currently worth about 76 Ethereum.
However, interest in NFTs has not been dimmed by market corrections and NFT launches are continuing. One of the most recent entrants is Tiffany & Co which partnered with CryptoPunks to release unique Punk pendants that are exclusive to the Punk holders that were launched with an NFT of the necklace known as NFTiffs. Alex Ohanian’s investment company 776 recently led a $54 million funding round in the popular NFT collection, Doodles.
After the announcement of Ohanian’s investment, Doodles’ sales volume surged over 700% in 24 hours.