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. Dream Sports is the parent entity of unicorn fantasy operator Dream11 and led a $120 million funding round of Rario in April 2022.
“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 posted on social media platform X.
Notably, the announcement came in the backdrop of a social media outcry by players. Users said Rario cards on D3 platform were meant to be scarce and thereby creating value, however, the NFT platform started minting more cards resulting the fall in demand and diminishing the value of the cards
Dream11 encouraged its users to invest in Rario, an NFT-based fantasy platform. Despite not gaining sufficient users initially, they sought credibility by involving celebrities such as Sachin Tendulkar @sachin_rt, Virender Sehwag @virendersehwag and Smriti Mandhana…
— SnEhA KuMaR ReDdY (@snehakumarreddy) January 10, 2024
Users also accused the company of suppressing user dissent by muting and banning individuals on the Telegram channel, along with implementing timers to limit discussions.
The latest announcement in this backdrop said Rario 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. More details on this new platform will be announced in February 2024. The first test match between India and England will be the last game that will be hosted on D3.
The company clarified that the existing cards will not be usable in the upcoming gaming platform. But the existing users will be eligible to additional perks and benefits on the upcoming gaming platform.
Former cricketer and top commentator Aakash Chopra who once promoted Rario asked the company to purchase back the cards at base value.
Pl consider buying back the cards on base value, at least. People invested in Rario trusting its backers…they’ll feel cheated if the cards are of no use whatsoever. https://t.co/VeY7cNljod
— Aakash Chopra (@cricketaakash) January 23, 2024
Rario posted an expenditure of Rs 600 crore to earn Rs 39 crore and had written off Rs 458 crore worth NFTs during the fiscal year ending March 2023.