By now most of you should have realized that the shake-up in the blockchain crypto world, especially the NFT world, has not just only affected Recur itself. Things were on a precipice already since late last year but what really broke the camels back was when the SEC started naming tokens as securities left and right. Whole blockchains had to start getting into compliance and all projects that work on those blockchains were affected directly and indirectly by the SEC’s decisions. Litigation in the court system with blockchains and crypto blockchains will be a forever thing however the magnitude and influence of litigation in the space will be very pronounced over the next few years since blockchain is still in its infancy in many regards. It’s still trying to find scalable use cases that will support high token prices. Everyone wants their bags to moon but at this point everyone should have a clue that the next bull run in crypto blockchain tokens will be on real world use cases and not fantasy based vague promises of some sort of Web 3 utopian future based on blockchain. I personally am of the opinion NFTs are going to be at the forefront of mass adoption of blockchain technology through gaming, phygital and digital drops.
Speaking of NFTs let’s circle back to Recur itself and the current state of their business operations or at least what I think is going on. First off their Twitter, as of today, has not been updated in over a week. If you look at the picture that I posted at the top of this post you can see that investment into crypto in general has fallen tremendously. I mean with rising interest rates the cost of capital has increased several fold and throwing money at pie in the sky scam ideas is no longer a viable way to look for capital appreciation. The swamp that is the crypto blockchain space needs to be completely emptied out of the rugs and non functional business ideas that were never really going to take off and are just living off investor capital until they run out of dough. I think Recur lies in a gray zone. It wasn’t an intentional rug but it was definitely poorly run and lead by an immature and most likely had a large portion of its investment mishandled by executive staff. Now if you know me you know that I never cared much for Recur and that the Hello Kitty IP was and has always been my focal point for having ever associated myself with Recur. As we have seen with other failed NFT projects there is always a chance that they can be revived even after failure. Although Recur has not closed shop officially nor declared bankruptcy it is pretty obvious that they have made severe cuts and are probably reevaluating, again, their approach and niche in the NFT space. Even if Recur goes under there is, in my opinion, a very likely chance that Sanrio takes the project contract and assigns it to another company to continue the roadmap.
It’s said Recur has a 5 year contract with Sanrio but I’m pretty sure there are clauses that allow Sanrio to break the contract and withdraw licensing rights if they believe their partner isn’t holding up their end of the bargain or if extenuating circumstances prevent the partnership from moving forward. Despite market conditions and the deteriorating state of crypto startups like Recur seemingly accelerating on a daily basis, the case for NFTs is as solid as ever and though funding is very limited now to move many NFT projects forward there is still loads of building still occurring in the NFT world. Ethiad wants people to stake their NFTs to be part of their frequent flier program, Starbucks is still knee deep in NFTs, Sanrio is still market testing metaverse like concepts in Asia and of course we have the ongoing saga of Pudgy Penguins and their phygital drops. There are many many more examples of developing trends within the NFT blockchain industry but the point is that though capital has left the NFT space for now, there will be a time when NFT technology, scalability, functional use case and desirability will increase to the point where money will go back in. I have said in previous posts that I think that will be summer of 2024, at least for phygital drops. Gaming NFTs are a different more complicated beast and I think they will be a massive onramp for getting people involved in NFTS via gaming but I think its 2 to 5 years in the making until we get gamers not only accepting the concept of NFTs but buying, trading, reselling, merging, upgrading and burning them with ease and eagerness. For now I think the low hanging fruit is phygital and digital drops that can engage potential and current fans of certain brand merchandise and make the brand experience something unique and memorable to the end retail customer.
Make no mistake regardless of Recur’s failure I am very positive should Recur go under the Hello Kitty NFT project would go temporary hiatus before the rights to the project would be bought out by another company. If Pudgy Penguins was brought back to life then I see no reason why Hello Kitty NFT project cannot. I do hope that the wrapping event for Hello Kitty snapshots is carried out this year in 2023 but the massive hammer blow of high cost of capital and ongoing legal compliance issues with tokens and NFTs has most likely set that back by a lot more than even I had anticipated. The fact that Recur isn’t even updating their Twitter profile probably indicates that the end of the company is near. Or it could be that there is massive pivot from within the company and that the upper executives will be flushed out and replaced by others. I mean it could mean a lot of things but what I can tell you definitely is that you better be prepared for some bad news over the next few months because if they are going to close shop they will announce it it in the Discord or they will announce that they are divesting certain projects from their portfolio. Even a lot of their partners are in deep legal and financial doo doo. Look at Near and Far marketplace which apparently has their own drama and legal issues as well as DAZ 3D supposed partnership to help develop the NFT projects that Recur manages. I mean its a shit show left and right EVERYWHERE in the market. It’s not just Recur.
Hold on to your NFTs and snapshots because its going to be a bumpy ride. Remember this isn’t a playground for kids, you better be an adult and take responsibility for your actions. Nobody forced you to invest. You eff around in the blockchain space and you find out that you can get a large bag of money or a large bag of crap. I understood the risks and am fine with them and always will be fine with them.
Hello Kitty NFT’s have a bright future but its gonna be a bumpy ride my friends. We’re just getting started and if you just think long term and actually educate yourself on the relevancy of NFTs and their future use cases you’ll just sit back and wait.
MetaParcel.com 
Great read, have you reached out to sanrio licensing for any answers? We cannot withdraw the snapshots even though they are on the blockchain and some moneys been spent on these.
I myself have already started my legal case but curious to your extended thoughts.
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Thanks for the reply. No I have no reached out to Sanrio and I think it wouldn’t do any good at this point deep in the NFT winter however I believe that just like with Pudgy Penguins the brand isn’t dead just the project funding for this particular initiative. I believe the project will get picked up and revived for a second chance sometime in the next year. My bet it be Animoca Brands that manages it but really anyone with deep pockets to see this through and into the emerging phygital marketing tactic that is just barely gaining traction. I transferred my NFTs already besides the snapshots of course.
Speaking of the snapshots yes I noticed that the snapshots cannot be withdrawn. It is really unfortunate that what I can purchase I cannot hold and they do hold my personal property. Recur will need to find away for owners of snapshots to be able to be recognized as owners and access the snapshots so that at least if another company decides to take over they know who owns what. Or they compensate snapshot holders because its one thing for the company to shut down, that’s life. It’s another that they go down and take my personal property with them because they say “Oh sorry we can’t send it to your wallet because ABC”
In the end this is the game we all play and its unfortunate we got done like this but I do hope that the snapshots can tie my ownership of them to me before Recur shuts down officially so I can claim them at a future date, assuming they’re not going to burn them or something.
Either way if the money is gone, the money is gone but I do wish to have access and ownership of those snapshots because I already bought them legally.
I hope your legal case against them goes well. In the meantime I checked the Token ID on on Matic Open Sea for the snapshots I minted and it does show my username in the metadata that shows ownership I suppose but not sure how sold that is, if you do a search of that junk below it will show “Metaparcel.com” somewhere. I’m glad that at least my username ID is on everysnap shot I own in the metadata on OpenSea Matic but if Recur shuts down and they migrate stuff over I would assume all that data gets lost? I’m not sure. Unfortunately since nothing is directly minted to a blockchain address I own, the owner is still Recur Minter.
All I want is to get my stuff and move on. I know it sounds crazy but NFTs, despite the copious rug pulls, are a good tech. I just want the scraps I own to keep as my own until the next bull run.
Thanks for the comment.
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