VisionRare Shuts Down NFT Marketplace After One Day

Visionrare Pauses NFT Marketplace, Plans Free-to-Play Game Relaunch

Within a day of initiating its open beta, Visionrare, a platform for NFT-based “fantasy startup investing,” has announced a temporary closure. Users who acquired shares will receive refunds, with a planned relaunch as a free-to-play game in the near future.

Initial Concept and Concerns

The platform enabled users to participate in auctions for non-fungible tokens (NFTs) representing shares in actual startups. This allowed them to construct a virtual portfolio and engage in competitive leagues, mirroring fantasy sports, based on portfolio performance. It's important to note that, as previously reported, the platform operated without securing authorization from the majority of the startups whose synthetic shares were being traded.

Temporary Shutdown and Refund Process

A notice on the company’s marketplace indicated that the founders had underestimated the legal challenges associated with offering novelty NFT shares linked to real-world companies. Consequently, the marketplace is being temporarily suspended while a strategic shift is developed.

The team communicated via their Discord channel that all credit card refunds for purchasers have been initiated. However, processing times via Stripe may cause some delays in the appearance of refunds.

Backlash and Regulatory Questions

The launch of Visionrare was met with considerable criticism. Tech leaders and investors raised questions regarding the platform’s legality, its potential classification as a security, and whether it intentionally provoked scrutiny from the Securities and Exchange Commission (SEC). Some even interpreted it as a potential indicator of a market peak.

Future Plans: A Free-to-Play Model

Despite these challenges, Visionrare’s founders remain committed to the concept of “fantasy startup investing.” However, they acknowledge the need for a fundamental restructuring of the platform.

“We will re-launch Visionrare as a completely free-to-play game in the coming days,” a blog post from the founders explained. “All players will begin with a predetermined credit amount to build their startup portfolios and compete in leagues based on real-world performance. We will explore the possibility of reintroducing a financial component at a later stage.”

The platform intends to move away from real-money transactions initially, focusing on a gamified experience.