Dream Sports-backed cricket non-fungible platform (NFT) platform Rario is shutting down its current product, effective January 29, 2024, nearly three months after its founders Ankit Wadhwa and Sunny Bhanot left the company.
"As we reflect on the events of the past six months-industry headwinds on account of new regulations in Web 3.0, crash in the NFT sector coupled with management failures, we have not been able to live up to your expectations," the company said in a statement.
Rario had earlier raised $120 million in funding led by Dream Sports, the parent firm of fantasy sports major Dream11, in April 2022.
The startup said the first test match between India and England will be the last game that it will host on D3, the cricket strategy game co-developed with Dream Sports. However, it noted that the user's cash balances are safe and available to users to withdraw until March 31, 2024.
Following this announcement, former cricketer Aakash Chopra asked the company to purchase back the cards at base value
"People invested in Rario trusting its backers…they’ll feel cheated if the cards are of no use whatsoever" Chopra said in a post on X (formerly Twitter).
Seeking to address user outcry, Rario issued a subsequent statement acknowledging that some users had experienced losses from their investments in Rario cards.
"We are working with various stakeholders to implement a plan to compensate you for any such losses and will provide you with details of the same by next week" it said in the statement.
Launching new platform
Rario said it will launch a new platform in March 2024 that will enable users to play new and 'engaging' cricket-based games. This will be run by a new management team put in place by the company, without disclosing any further details.
Rario CFO Priyesh Karia is currently leading the team as its CEO, Moneycontrol has learnt.
"The current Rario cards will not be usable in the upcoming gaming platform. But, as a loyal Rario user, we will be providing you with additional perks and benefits on the upcoming gaming platform. Detailed information about these as well as a sneak peek into the games, rewards programme etc will be shared by February 10, 2024" it said.
Dream Sports declined to comment on this development. Moneycontrol has reached out to Rario for more information and will update you once we hear back.
Note: The story has been updated to include Rario's subsequent statement on its plans to compensate users facing losses from their investment on Rario cards.
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