Rario, the cricket Non-Fungible Token (NFT) platform backed by Dream Sports, has announced the impending closure of its current product.
The platform, recognised for its digital collectables featuring cricket icons such as Sachin Tendulkar, Virender Sehwag, and KL Rahul, disclosed its decision to shut down operations, stating that its current cards would not be usable on the upcoming platform set to relaunch in March.
The announcement, made through an X post on Tuesday, has sparked turmoil among retail investors who collectively invested Rs. 30-40 crore in the platform’s NFT card, as per a report by The Economic Times.
Outraged users have taken to various social media platforms, including X and Telegram, demanding refunds and expressing frustration over the sudden development.
“The first test match between India and England will be the last game that we will host on D3. Please rest assured that your wallet cash balances are safe and available for you to withdraw till March 31, 2024,” announced Rario.
While Rario has promised ‘additional perks’ for loyal users, the specifics of these incentives remain unclear, adding to the growing uncertainty within the community. Dream Sports, the majority backer of Rario, has not yet commented on the issue, leaving investors in limbo.
This development follows a series of challenges faced by Rario over the past nine months. In April 2023, the Delhi High Court rejected Rario’s plea against competitors Striker and MPL. The court affirmed the protection of using celebrity names and images for satire, parody, art and similar purposes under Article 19(1) of the Constitution. This decision invalidated many rights acquired by Rario, leading to the shutdown of Striker in December 2023.
The legal setback intensified disagreements between Dream Sports and Rario founders Ankit Wadhwah and Sunny Bhanot, resulting in the founders’ departure from the company in August 2023.
Rario, having secured $120 million in series-A funding in April 2022, invested approximately Rs 148 crore in licensing deals and partnerships with cricketing entities such as Cricket Australia and the Australian Cricketers’ Association.
“The current Rario yards will not be usable in the upcoming gaming platform. But, as a loyal Rario sure, we will be providing you with additional perks and benefits on the upcoming gaming platform. Detailed information about these as well as a sneak peek into the games, rewards programme etc will be shared by February 10, 2024,” said the official announcement post of Rario.
The platform allowed users to participate in Dream Sports’ strategy game, D3, using NFTs. With over 1.5 million player cards sold and over 700,000 users as of April 2023, Rario was the biggest NFT player in India.
In an update to the situation, Rario posted another X tweet where the company said, “We understand that some of you have experienced losses from your investments in Rario cards.” The company said that it is working with “various stakeholders to implement a plan to compensate you for any such losses and will provide you with details of the same by next week.”
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