- DappRadar is ceasing operations after seven years, citing “financial unsustainability.”
- The platform’s native token, RADAR, plunged 34% to $0.0006 as traders exited positions.
- CoinMarketCap’s CEO offered a potential lifeline, though no official deal is confirmed.
DappRadar, a leading Web3 analytics platform, has officially announced it is shutting down. The company cited “financial unsustainability” as the primary reason for ending its seven-year operation. The announcement immediately triggered a sell-off in its native RADAR token.
“After seven years, it’s time to say goodbye,” DappRadar noted on X.
Why Is DappRadar Closing After Seven Years?
The platform, a staple of the DeFi sector since 2018, will stop providing real-time analytics in the coming days. The team confirmed they will begin winding down the platform immediately. This process includes stopping the tracking of blockchains and decentralized applications (dApps).
“In the coming days, we’ll start winding down the platform and as part of this process, we’ll stop tracking blockchains and Dapps and begin shutting down associated services,” the announcement said.
Meanwhile, DappRadar announced that its community will make the final decisions about the DAO platform and RADAR token. According to on-chain data analysis from Binance-backed CoinMarketCap (CMC), over 77% of the RADAR tokens have been unlocked for the 15k holders, with around 13.7% still locked for future distribution.
Worth noting that the DappRadar treasury holds 27% of the total supply of RADAR, while the team and shareholders were allocated a similar amount.
Related: Bitcoin Falls Under $90K: A Crash, Correction or Discounted Buy Zone?
RADAR Token Crashes 34% on Liquidity Exit
Following the announcement, the RADAR price crashed suddenly. In the past 24 hours, the small-cap altcoin, with a fully diluted valuation of about $6.7 million at press time, dropped over 34% to reach a 24-hour range low of around $0.000618.
Crypto traders rushed to cash out any remaining capital at the RADAR token as observed by the 44% surge in its 24-hour volume to $166k amid its choppy market.
Industry Leaders React: Is a Rescue Deal Possible?
The sudden closure of the DappRadar platform has attracted significant attention from the Crypto community. For instance, Justin Sun, founder of the Tron network, bid farewell to the DappRadar platform as he noted that its demise is almost certain around the corner.
Rush Lu, the CEO of CoinMarketCap, offered a helping hand for DappRadar’s predicaments. Lu offered the DappRadar platform an opportunity to keep them around, without specifying any details.
The shutdown of the DappRadar platform has coincided with extreme fear of further crypto capitulation. The recent Bitcoin (BTC) price drop below $90k for the first time in 7 months has increased traders’ fear of a further crash to extreme levels.
A potential acquisition of DappRadar by CMC will add it to the list of crypto projects backed by Binance and Changpeng Zhao (CZ).
Related: ‘Good News Is Bad News’: Why the Shutdown’s End Is Hurting Bitcoin
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