DeFi Platform Paradigm Labs Shuts Down Due to Limited Resources
The decentralized finance (DeFi) project, Paradigm Labs has announced the shutting down of its platform. Liam Kovatch, the co-founder and CEO of the company broke the sad news on last Tuesday, March 10.
The company stated lack of significant product-market fit and limited resources as the main factors that led to their decision. They expressed their gratitude to their community for their constant support over the past 2 years.
The announcement reads:
“After almost two years of active research and development, our team has come to the decision that without a significant product-market fit and limited resources to pursue emergent opportunities, the kind of success we envisioned for Paradigm Labs is unlikely. Out of respect to all of our stakeholders, we assessed this situation as quickly as we believed we could responsibly do and converged on the decision to sunset the company.”
The announcement noted that their decision will also affect the broader 0x staking ecosystem, as Zaiden’s War Chest will no longer collect protocol charges from March 16 onwards. They therefore urged the stakers to reallocate staked ZRX onto other active pools.
Though the platform is closed down, the team has not closed its doors to the community members. They are going to use the remainder of March to ensure a smooth close down of the project and company. The team will ensure active communication with the affected users and business operations necessary to the legal dissolution of the company.
Featured image courtesy of Shutterstock. Source: Cryptopress.