- Phaver spent over $1 million listing its token on five CEXs, which failed to deliver expected liquidity or long-term market value.
- The team did not sell any tokens during TGE, leading to a severe shortage of operational funds and eventual shutdown of services.
- Claiming issues during TGE and airdrop caused user frustration and widespread FUD, triggering an early collapse in token confidence.
Phaver, a social media app, has ceased operations following a steep drop in its token value. The token has fallen 99% since its launch in September 2024. The company faced severe cash shortages that led to operational shutdown.
Phaver Shuts Down Operations
Phaver ended its services and closed all its social media channels. The company struggled to meet financial obligations amid declining token value. Staff reported that insufficient operating funds forced the closure.
The Finnish company experienced mounting challenges during the notice period. It continued paying employees for one to two months despite halting operations. The decision to continue payroll added to the financial strain during the transition.
Token Performance and Operational Missteps
The token experienced a dramatic fall in value after its token generation event. Errors during the token sale and airdrop resulted in portal failures. Users faced difficulties when claiming tokens, which increased community concerns.
The team’s decision to withhold token sales worsened the cash flow problems. This decision came after high market uncertainty and operational challenges. The failure to generate needed funds contributed to the company’s inability to sustain its business. The mismanagement during the token event remains a key factor in the app’s downfall.
Financial Decisions and Market Position
Phaver raised eight million dollars at an eighty-million-dollar valuation. Investors such as Polygon Ventures and Nomad Capital supported the venture. Despite the significant investment, funds were insufficient for daily operations. The company made high-cost decisions that further strained its finances.
Phaver spent over $1M for listings on five centralized exchanges. These listings increased market exposure but did not resolve the liquidity crisis. The token continues trading on several major exchanges, including Bybit, KuCoin, and Gate. Market performance remains poor despite the listings.
The company had shown early promise with 35,000 daily active users and 800,000 downloads. At its peak, Phaver managed 50% of Lens traffic and 20% of Farcaster traffic. The operational missteps and financial miscalculations now serve as a lesson for other crypto ventures. Phaver’s closure marks a notable event in the evolving crypto industry.
