The NFT platform Tessera winds down operations

Andy Chorlian, co-founder of Tessera, the NFT fragmentation protocol, and Escher, the NFT trading floor, has announced that the platforms will be winding down after a lot of deliberations. The decision was hard, however, all operations over the next few weeks will wind down, Andy said in a Tweet.

The news of Tessera’s shutdown follows a year after its rebranding from the original name Fractional and a $20 million funding round. The team according to Andy has been analyzing possible market scenarios, the company’s structure, and its financial situation. 

Escher is one of the projects in the Tessera portfolio and its economic model for profitability didn’t add up, according to the co-founder. “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.”

Following the considerations the team landed at the decision that winding down was the best choice for them and investors. Adding to that, he said, “We wanted to make this decision while we’re still in a financial position to do this responsibly, and ensure employees are supported during this hard transition.”

Tessera was founded by Andy and Nejc Krajnik in 2021, having served for about two years, Andy expressed that it was challenging and exciting taking the role for those years. “I have done a ton of reflecting on all of my mistakes over the last few years as a first time founder,” he said.

Andy, when asked by a user how he intends to reconcile parallel binders, stated that information on that and their products will be shared in the coming weeks, however, he is more concerned they all wind down gracefully.

Read also;

What’s Endgame? How will MakerDAO change after the upgrade? 

What do you think of this article? Share comments below.