Cardinal, a Prominent Project on Solana, Shuts Shop

July 02, 2023

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In accordance with the recent reports, the Solana-based protocol Cardinal has declared it will cease operations due to the challenging economic climate.

Deadline Set at August 26

The deadline for withdrawals is August 26th, per a tweet that was recently delivered. The 18-month-old protocol admitted it was a tough build process, a “incredibly difficult macroeconomic environment,” and that it is “stuck in the context of the crypto maximalist community.”

Cardinal Blames Macroeconomic Conditions

The shutdown occurs almost a year after raising $4.4 million to increase the usefulness of nonfungible tokens (NFT). The cardinal team said on Twitter: “We’ve done our best to navigate this incredibly difficult macroeconomic environment.”

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The protocol’s deployments will stop working after the shutdown, although its source code will still be available. Users have been assured by Cardinal that their assets were totally secure and will be released during the wind-down procedure.

All Cardinal Services will be Disabled

“Staking, Stake Pool creation, Token Manager creation in any context [rental listing, etc.], New NFT rentals and rental extensions, and Namespaces name linking [social media handles and otherwise]” will also be disabled in addition to the withdrawal button.

Additionally, from June 28 to August 26, all depositors must withdraw their funds by themselves. This will mostly require unstaking tokens staked with Cardinal Staking or delisting rentals that are currently displayed on the Cardinal rental marketplace.

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SEC Claims SOL is a Security

Notably, the Securities and Exchange Commission (SEC) has recently filed lawsuits against Coinbase and prominent digital asset service provider Binance, alleging that the native cryptocurrency of the Solana blockchain, SOL, is a security. In response, the Solana Foundation recently has made it clear that this is not the case.

According to a June 10 statement on Twitter: “The Solana Foundation disagrees with the characterization of SOL as a security.” Additionally, Back in May, It was reported that Solana (SOL) has overtaken Ethereum in terms of on-chain active addresses.