What’s happening with crypto platforms? On some days, the morning breaks with news of crypto firms/platforms ceasing their operations. This is not just a recent trend; in previous years, especially in 2022, several platforms have come to a complete halt. Now, here is the latest addition: On-chain analytics platform Parsec has officially announced that it is shutting down its services.
A well-funded Parsec could not handle crypto downturn
Parsec’s on-chain data analytics was notable among decentralized finance (DeFi) and NFT sectors, where traders used its dashboard builders, APIs, real-time data views, and AI-based tools like Parsec Agent.
As a niche crypto analytics startup, the platform did not face any funding issues, especially at the initial stage of progress. It raised funds from investors such as Polychain Capital, Robot Ventures, Galaxy Digital, and Uniswap Ventures.
However, the crypto market was not on good terms with several platforms, including Parsec. The broader crypto winter has increased volatility in the market, significantly reducing on-chain activity. The platform also could not align with how the crypto market evolved.
Parsec CEO Will Sheehan said: “The market zigged while we zagged a few too many times ”.
However, in the 2022 crypto crisis, Parsec gained momentum when traders and several institutions used its on-chain tools to carefully watch leverage, liquidation, and risks of multiple collapsed projects.
As the CEO further explained, he focused on the fact that the FTX crypto exchange collapse in 2022, DeFi lending, and leverage recovery drastically changed on-chain activity. That said, crypto’s hype-driven and temporary nature has put the platform down.
With an apologetic tone, Sheehan noted that he has made thousands of mistakes, but he is proud of the team he built.
Parsec refunds subscription fees
Parsec published a notice on its website, saying the platform is shutting down after five years of service. The Parsec team is also in the process of issuing refunds and cancelling active subscriptions. “We are eternally grateful to those that traversed the ups and downs of on-chain crypto with us; it was quite the ride.”
Although the crypto industry innovates, hundreds of platforms are facing challenges both in terms of finance and scaling. Recently, the Gemini crypto exchange cut down 200 jobs globally, in an effort to shift its complete focus to the US. Gemini-owned Nifty Gateway also wound down its operations. Entropy, a decentralized crypto custody startup, recently closed down operations following scalability issues.
