Andy Chorlian, co-founder, announced the decision on Twitter after “carefully analyzing possible market scenarios, our company structure, and our financial situation.”
Tessera, a platform that permits community ownership and control of non-fungible tokens (NFTs), is shutting down operations in the coming weeks, according to co-founder Andy Chorlian.
Chorlian, who co-founded the firm in 2021 with Nejc Krajnik, said that the decision was reached after “carefully analyzing possible market scenarios, our company structure, and our financial situation.”
Chorlian announced the closure of Escher, a curated digital fine art marketplace that was part of the Tessera portfolio.
“As we dug deeper into the Escher economic model, we saw that the targets we needed to hit to achieve profitability – when compared to the time and resource costs to scale there – just didn’t add up or make good business sense,” he said.
Nounlets, a fractional ownership platform for Nouns NFTs, and We Do a Little, a podcast presented by Chorlian and NFT influencer Deeze, are two more Tessera enterprises.
Tessera’s demise comes little under a year after it rebranded from Fractional and announced a $20 million fundraising round headed by crypto investing behemoth Paradigm. Focus Labs, Uniswap Labs Ventures, eGirl Capital, and Yunt Capital were among the other investors in the Series A fundraising round.
The process of fractionalizing NFTs entails establishing fungible tokens linked to an underlying digital asset, such as a Bored Ape or CryptoPunk. The NFT is often stored in a vault, and fractional tokens may be exchanged on secondary markets.