NFT Project Tessera Shut Down Amid NFT Market’s Strong Fall

Key Points:

• Tessera, a fractional NFT project, and its sibling project Escher will be shutting down in the next weeks.
• According to the company, its financial status and economic model will make it difficult to become profitable.
• In August 2022, the firm secured $20 million in a Series A investment headed by Paradigm.

Tessera, a platform that permits community ownership and control of non-fungible tokens (NFTs), is shutting down operations in the coming weeks, according to co-founder Andy Chorlian.

Tessera and its sibling project Escher will shut down in the coming weeks after the Paradigm-backed firm said that its financial circumstances and economical approach would make it difficult to become successful.

Chorlian, who co-founded the firm in 2021 with Nejc Krajnik, said that the choice was reached after carefully assessing potential market situations, our corporate structure, and our financial status.

“As we really dug into the economic model for Escher, we saw that the targets we needed to hit to attain profitability – compared to the time and resource costs to scale there –just didn’t add up or make good business sense,” the CEO said in a tweet.

Tessera, formerly known as Fractional, allows users to purchase and trade tokens representing fractions of NFTs. The concept aimed to enable anybody to own a portion of even the most costly NFTs. Escher was a platform for collecting artwork in the form of virtual showrooms, where anybody could go in and digitally study the artist’s work.

Tessera’s demise comes a little under a year after it rebranded from Fractional and announced a $20 million fundraising round headed by crypto investing behemoth Paradigm. Focus Laboratories, Uniswap Labs Ventures, eGirl Capital, and Yunt Capital were among the other investors in the Series A fundraising round.

Nounlets, a fractional ownership platform for Nouns NFTs, and We Do a Little, a podcast presented by Chorlian and NFT influencer Deeze, are two more Tessera enterprises.

Although the NFT market continues to suffer in the midst of crypto winter, markets have adopted methods that enable consumers to invest in digital collectibles with lower initial outlays.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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