Clockwork Smart Contract Startup Calls it Quits, But Solana Price Remains Bullish
In Brief
As Clockwork, a Solana-based smart contract startup, announces its shutdown, Solana’s positive market sentiment endures, with its price surging by almost 6%.
Clockwork plans to cease operations by October’s end due to limited commercial potential, with founder Nick Garfield eyeing new prospects.
Clockwork, a smart contract automation startup built on the Solana blockchain, announced its intention to shut down operations by the end of October. Founder Nick Garfield attributed the decision to the project’s “limited commercial upside” and expressed interest in exploring new opportunities.
The development marks another closure within the Solana ecosystem, prompting questions about the viability of projects on the platform. The startup, which successfully raised $4 million in a seed funding round last August, will halt active development and deactivate nodes on both devnet and mainnet.
Garfield explained that the shutdown is rooted in the “simple opportunity cost” of pursuing a project with limited benefits while being drawn to explore fresh prospects. Clockwork facilitated transaction scheduling on the Solana network and enabled the automation of smart contracts to execute applications triggered by specific events.
Clockwork’s shutdown aligns with a broader trend of Solana-based protocols winding down their operations.
Earlier this year, DeFi platforms Friktion and Everlend also ceased their activities. Furthermore, the NFT protocol Cardinal halted due to economic conditions. These closures raise concerns about the commercial sustainability of ventures within the Solana ecosystem, a platform aiming to compete with major blockchain networks.
Despite the cessation of Clockwork’s activities, its underlying code will remain accessible as open-source software, open for anyone interested in continuing the project.
In the announcement, Garfield encouraged forking and further development. Regarding the fate of the initial seed funding, he said that a “meaningful portion” of the funds remains and that he will take time to decide on its allocation.
Clockwork Shutdown Raises Concerns Over Solana’s Ecosystem and Investor Confidence
The decision to shut down Clockwork has implications beyond the project itself, extending to investors and the broader Solana ecosystem.
Clockwork had secured funding from prominent venture firms, including Multicoin Capital and Asymmetric, alongside participation from Solana Ventures, as per Crunchbase data. The shutdowns in the Solana ecosystem could potentially dent investor confidence in projects on the platform, raising questions about its viability.
Clockwork’s closure arrives at a crucial juncture for the Solana network, which strives to solidify its position as a significant contender within the blockchain space.
Last week, Solana Pay, a decentralized payment protocol built on Solana, became available as an app integration on Shopify. The integration allows merchants to accept payments in USDC and offer on-chain loyalty programs.
In May, the Solana Foundation launched a $10 million AI grants fund and an AI accelerator program for university students to support builders exploring the intersection of artificial intelligence and blockchain on Solana.
The grant fund will support projects that develop new use cases for AI on Solana, such as fraud detection, market forecasting, and DAOs. The accelerator program will provide students with mentorship, funding, and access to the Solana ecosystem.
Bitcoin ETF Approval Fuels Crypto Surge, Lifts Solana Sentiment
U.S. court overturned a decision by the Securities and Exchange Commission (SEC) to block an ETF that invests directly in Bitcoin. This is a major victory for the cryptocurrency industry, which has been seeking approval for a spot Bitcoin ETF for years.
The ruling could pave the way for more investment in Bitcoin and other cryptocurrencies, which could boost their prices. Shares of crypto-related companies surged in response to the news.
The Grayscale Bitcoin Trust shares jumped around 19%, while Coinbase, the largest US crypto exchange, increased 14%.
Despite the developments surrounding Clockwork, Solana continues to ride the wave of the current positive sentiment in the crypto market, with the price of SOL experiencing a noteworthy increase of nearly 6% today.
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About The Author
Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
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Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on agnec@mpost.io.
