Fractional NFT project Tessera and its sister project Escher will shut down over the coming weeks, after the Paradigm-backed company said its financial situation and economic model would make it hard to become profitable.
“We spent a long time carefully analyzing possible market scenarios, our company structure, and our financial situation, and decided that this was the best choice for our team and investors,” co-founder Andy Chorlian wrote on Twitter. “As we really dug into the economic model for Escher, we saw that the targets we needed to hit to attain profitability – compared to the time and resource costs to scale there –just didn’t add up or make good business sense.”
Tessera, originally known as Fractional, lets users buy and sell tokens that represent fractions of NFTs. The project sought to make it possible for anyone to own part of even the most expensive NFTs.
Escher was a platform for aggregating artwork in the form of virtual showrooms, where anyone could drop in and be able to virtually explore the artist’s work.
The company had raised $20 million in a Series A…