Dream Sports-backed cricket NFT startup Rario is shutting down its current product, effective January 29, 2024
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
In March, Rario will be launching a new platform that will enable you to play ‘new and engaging’ cricket-based games
Months after Rario’s founders Ankit Wadhwa and Sunny Bhanot exited the company following an internal tussle with the investors, the cricket-focused NFT startup is shutting down its current product, effective January 29, 2024, as it reels under headwinds in the NFT and Web3 space.
“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,” Rario said in a statement.
“Recognising the need for change, we have put in place a new management team which will bring about a positive transformation. The newly appointed team has a shared commitment towards steering the business in the right direction. To make this possible, we have to sunset the current Rario product effective January 29, 2024,” it added further.
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, the user’s cash balances are safe and available to users to withdraw until March 31, 2024.
In March, Rario will be launching a new platform that will enable you to play new and engaging cricket based games.
“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 benefits on the upcoming gaming platform,” it said.
Founded by Wadhwa and Bhanot in 2021, Rario enables cricket fans to own digital collectibles like player cards, video moments, and cricket artefacts.
Apart from Dream11, the startup is also backed by Alpha Wave Global, Web3 investor Animoca Brands, Presight Capital, and Tendulkar.
At the peak of the NFT craze in 2022, the startup secured a substantial $120 Mn in funding, capitalising on the surge in popularity of these tokens among various domestic players. However, as 2022 unfolded, the government implemented a 30% tax on income from the exchange of virtual digital assets, significantly impacting the NFT ecosystem and causing a sudden decline in their popularity.
Compounding the challenges were costly partnership deals with multiple cricket boards and tournament organisers aimed at attracting users. Additionally, the company found itself under scrutiny from a consumer rights body, the Consumer Online Foundation, facing allegations of violating the Prevention of Money Laundering Act (PMLA), 2002.
It was reported in September that the founders of Rario, Wadhwa and Bhanot, were reportedly exiting the company. The investors of the platform, including gaming giant Dream11, were pushing CEO Wadhwa and CTO Bhanot out of the company in a bid to exert more control over the operations of the firm.
