The social application Phaver has ceased operations due to a number of serious problems that arose during its functioning. According to information from cryptocurrency analyst under the pseudonym Ignas, the project’s token has lost 99% of its value since the token generation event (TGE).
This is reported by Business • Media
Reasons for Phaver’s Closure
Ignas reported that the Phaver team faced financial difficulties, as well as a wave of fear, uncertainty, and doubt (FUD). The application, which was positioned as a “bridge” between Web2 and Web3, was launched in May 2022 and reached a peak of 35,000 daily active users (DAU) and over 800,000 downloads.
In October 2023, Phaver successfully completed a seed funding round, raising $7 million from major investors such as Polygon Ventures and Foresight Ventures. However, since the TGE in September 2024, the token has experienced a significant decline. From a total supply of 10 billion SOCIAL tokens, the team received only 18%, which caused additional problems.
“The closure of the project was the result of three main factors: mistakes during the TGE, overpayment for listing, and poor token management. This led to our financial difficulties,” noted a representative of the developers in a conversation with Ignas.
Next Steps for the Team
Ignas emphasized that the situation with Phaver is typical for many crypto projects. Despite the closure, some former team members continue to work on a new project called SocialDAO.ai, which aims to provide utility for the SOCIAL token.
Since the launch of Phaver, the value of its token has collapsed by 99%, according to TradingView data. It was also previously reported that the total value locked (TVL) in the DeFi sector has decreased by 30% since December 2024.