Clockwork, a Solana-based automation protocol, has announced that it will cease operations by Oct 31. The protocol’s founder, Nick Garfield cited opportunity costs and the lack of a commercial upside in the ongoing crypto bear market as reasons behind the decision. Amidst the icy clutches of the crypto winter, Garfield hinted at a shift in professional interests, stating, “We admittedly see limited commercial upside in continuing to develop the protocol, and have a growing personal interest to explore new opportunities.”
With this announcement, the company joins a growing list of digital asset firms crippled by the raging bear market. Although the direct team work would stop, Garfield assured that the project’s code would remain open-source and easily accessible on GitHub. Enthusiastically pointing at the audience, he said, “Where Clockwork goes from here is up to you!” This indeed encapsulates the essence of the crypto landscape – open, permissionless, and driven by a passionate community.
Clockwork’s application aimed to allow users the creation of automated and scheduled smart contracts, streamlining processes like payroll payments and other recurring transactions. Last year, the company had successfully raised $4 million in a seed round, from notables such as Solana Ventures, Multicoin Capital, and Asymmetric.
The closure announcement sparked curiosity amongst users about the fate of the remaining seed round funds. One user asked, “Tough Q but just curious, if there’s any money remaining from the seed round, will that be returned to investors and be written off as a loss?” Garfield acknowledged that a meaningful portion of the seed fund is still untouched, but the final decision is yet to be made. “We still have a meaningful portion of our seed funding. Fully shutting down is an option, but I need to take a minute to reset myself before deciding one way or the other.”
The bear market’s chill has seeped deep into Solana’s ecosystem as well. As a result, a significant number of projects are falling through, and DeFi volumes are experiencing a sharp dip. The total value locked (TVL) on the ecosystem has undergone a drastic fall from around $1 billion to a mere $310 million. With these set of events in motion, it becomes evident that even the mightiest of crypto giants are not immune to market volatility. The relentless winter, it seems, is taking its toll.