The cryptocurrency market has been a rollercoaster ride, and its effects have reverberated through various sectors within the crypto space. One such area is Non-Fungible Tokens (NFTs), where Glass Protocol, a venture-backed startup, recently faced the harsh realities of the bear market. Co-founders Sam Sends and Varun Iyer made a significant announcement on X (formerly Twitter) that they would be discontinuing the active development of Glass Protocol due to insufficient demand for digital, tradeable video NFTs.
Glass protocol blames insufficient demand for video NFTs
Glass Protocol, a startup with a brief but impactful two-and-a-half-year journey, aimed to revolutionize how online content creators monetize their videos through NFTs. The concept was to provide a platform for creators to mint and sell their videos directly to their fanbase, potentially yielding more revenue compared to traditional platforms like YouTube. Furthermore, they believed that utilizing blockchain technology would introduce transparency and permanence to this process by storing videos in a decentralized manner.
However, the reality didn’t match their vision. The bear market in crypto, with a particular impact on NFTs, hit Glass Protocol hard. Trading volumes for all types of on-chain collectibles, from well-known “blue chip” NFTs like Bored Apes to smaller projects like Glass, took a substantial hit. As a result, the demand for video NFTs dwindled, leaving Glass Protocol struggling to find a foothold in the market. The founders, Sam Sends and Varun Iyer, expressed their disappointment with the situation.
Varun Iyer said that the market for video NFTs can no longer sustain the platform’s development, echoing the sentiment of co-founder Sam Sends, who also acknowledged that it was unfortunate but they had reached a conclusion that there is not sustainable demand for video NFTs. The core idea behind Glass Protocol was to empower creators and allow them to profit more from their work while fostering a direct connection with their audience.
The menace of the harsh conditions in the industry
The co-founders envisioned NFTs as a novel way for content creators to express, own, and share what they care about. However, despite their noble intentions, Glass Protocol struggled to gain traction. One key aspect of Glass Protocol’s journey was its pivot from the Solana blockchain to Ethereum, its original home. This strategic shift aimed to tap into Ethereum’s larger and more established NFT ecosystem. However, even this move didn’t provide the expected boost in demand for video NFTs.
Glass Protocol had attracted $5 million in funding just the previous September from investors including TCG Crypto and 1kx. It remains unclear whether the protocol exhausted its funding or if any venture capital remains. At the time of this article, the co-founders had not responded to requests for comment. Despite discontinuing active development, the NFTs created through Glass Protocol will continue to exist alongside the website and protocol. However, the decision not to continue working on the protocol itself casts a shadow on its future growth prospects.
The story of Glass Protocol serves as a stark reminder of the volatile and unpredictable nature of the cryptocurrency market. Even with innovative ideas and strong backing, startups in the crypto space can struggle to find their place, especially when market conditions take a downturn. Glass Protocol’s journey from a promising startup with a vision to a venture facing the harsh realities of the crypto bear market highlights the challenges and uncertainties that entrepreneurs and innovators face in this rapidly evolving industry.
While NFTs have captured the world’s attention and generated immense interest, they are not immune to market fluctuations, and success in this space remains elusive for many. Glass Protocol’s founders may have walked away, but their story serves as a valuable lesson for others venturing into the world of crypto startups.
