Momint, a South African Web3 startup, has announced its closure due to high operational costs and a challenging financial environment.
Founded in 2021 as the first NFT marketplace supporting transactions in local currency, Momint once attracted attention with many high-value NFT transactions and an initial investment fund of 2.1 million USD. However, challenges related to liquidity and regulations forced the company to shut down in mid-2024.
MAIN CONTENT
Momint is the first NFT marketplace in South Africa that supports transactions in local currency.
In 2023, the startup shifted towards the tokenization of physical assets through the SunCash project.
By mid-2024, Momint is estimated to process over 400,000 transactions but still faces liquidity and regulatory pressures.
What is Momint and what is its role in the South African NFT market?
Momint is considered a pioneering NFT platform in South Africa with the ability to transact in Rand, contributing to the development of the local cryptocurrency industry. The brand was once marked by high-value NFT transactions and successfully raised 2.1 million USD in the Seed round.
The addition of transactions in local currency increases accessibility for domestic users, facilitating NFT transactions while enhancing the credibility of the NFT market in this area.
Why did Momint decide to shift towards the tokenization of physical assets and implement the SunCash project in 2023?
To adapt to the volatility of the NFT market, Momint focused on developing the SunCash project in collaboration with Sun Exchange, allowing users to invest in solar energy with a return of 12% USDC/year. This shift demonstrates practical experience in diversifying products, attracting users and investors.
The SunCash project has created over 400,000 transactions and attracted 53,000 users before facing liquidity and growth limitations.
“We see an opportunity in linking blockchain technology with renewable energy to create real value for users, however, the legal environment poses many challenges.”
CEO of Momint, speaking in July 2024
What was the main reason for Momint's closure in mid-2024?
Increased operational cost pressures, strict regulations, and user scale restrictions have prevented Momint from maintaining necessary liquidity. The already unstable global cryptocurrency financial context further reinforced this closure decision.
The lack of user scaling and increasing competition in the NFT and asset tokenization industry are also crucial factors undermining Momint's competitive advantage.
“Although the startup has a good technological foundation and an innovative model, the financial and management environment in South Africa is currently not very favorable for initiatives like Momint.”
Web3 finance expert in South Africa, comment 2024
What outstanding achievements did Momint attain before ceasing operations?
The startup recorded a total of nearly 2 million USD in transactions on the platform, including valuable NFTs and an increase in users to 53,000. The number of transactions exceeding 400,000 reflects the growing demand and real customer experience with the tokenization of digital and physical assets.
These are important figures that demonstrate the potential and impact of Momint in the Web3 market in the early stages of development in South Africa.
What lessons can be learned from the closure of Momint?
The cryptocurrency and NFT market requires not only technology but also a favorable legal environment and sustainable user development strategies. Momint indicates that liquidity and user scale are critical survival factors for Web3 startups.
At the same time, the shift towards the tokenization of physical assets requires support from investors and transparent regulations to ensure long-term stability.
Frequently Asked Questions
What kind of startup is Momint? Momint is the first NFT marketplace in South Africa that supports transactions in local currency, established in 2021 and notable for many high-value transactions. Why did Momint shift towards the SunCash project? Due to the volatile NFT market, Momint launched SunCash to tokenize physical assets, investing in solar energy with a profit of 12% USDC/year. What caused the closure of Momint? High operational costs, liquidity restrictions, and strict regulations made it impossible for Momint to continue operations. What achievements has Momint obtained? Processing over 400,000 transactions, attracting 53,000 users, and around 2 million USD in transactions on the platform. What major lesson can be drawn from Momint for Web3 startups? Liquidity and user scale determine success or failure; the legal environment and product development strategy need to be clear.
Source: https://tintucbitcoin.com/momint-san-nft-nam-phi-ngung-hoat-dong/
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