• Agne

An anonymous donation keeps a closing decentralized marketplace in operation

Updated: Oct 4, 2020

OpenBazaar was about to close down by October 1, until an anonymous donor decided to fund its infrastructure and keep it operating through the end of 2020.

Founded in 2014, the decentralized marketplace has been struggling to stay afloat for some time, and last week the company went public about its financial situation. Thus, OpenBazaar has kindly asked for community donations to keep the project in service. A company's representative revealed that according to their calculations, an estimate of $100,000 would be sufficient to keep the project alive for one more year.

Decentralized marketplaces offer their users a possibility to buy and sell products and services directly to other individuals without any charges. However, it does not mean that OpenBazaar did not incur infrastructure costs - its API wallet and exchange rate API have been the major expenses. Also, let's not forget human resources required to maintain the code.

The company has been putting its faith into donated funds to support these infrastructure spendings, as the marketplace platform did not seem to have enough users to maintain a viable business. However, it appears that OpenBazaar has one hardcore user who was eager enough for the marketplace to succeed to donate a generous amount of money.

Brian Hoffman, CEO of OB1, the company behind OpenBazaar shared that apart from continuing usual business, structural changes may be coming as well. His tweet earlier this week said that "The future of @openbazaar will be more independent from @OB1Company. More news on that soon."

  • White LinkedIn Icon
  • White Facebook Icon
  • White Twitter Icon

© 2023 by SwitchBIT. Created on ViaLIFE Pte Ltd.