Coinbase-Backed Crypto Perps Exchange Satori Finance Is Shutting Down

Satori Finance, a decentralized perpetual futures exchange backed by Coinbase Ventures and Jump Capital, is sunsetting its platform due to financial stress amid a declining crypto market.

The firm, which raised $10 million from investors in 2022, supported perps trading on Ethereum, BNB Chain, and prominent layer-2 networks like Base and Arbitrum, among other crypto networks.

“Unfortunately, due to prolonged unfavorable market conditions, our revenue has not been sufficient to sustain operations, and continuing to run the platform is no longer financially viable,” it posted on X.

The platform will remain operational throughout the next month, but the firm is recommending that users close open trades and withdraw their assets. When it ceases operations after July 16 at 7:59 p.m. ET, the team said customers may no longer be able to access their funds. 

“We want to reassure you that your assets remain fully safe and under your control throughout this transition period,” it said. “There is no need for concern—this notice is simply to help you plan ahead and ensure a smooth, orderly withdrawal process.” 

Satori boasted more than 3 million customers and nearly $99 billion in total trade volumes lifetime, according to its website. 

The perp DEX’s shutdown continues a trend fueled by the significant drawdown in crypto prices, highlighted by Bitcoin’s 48% dip from its all-time high of $126,080. As it stands, the top crypto asset changed hands around $65,340 on Wednesday.

In the last week, Bitcoin layer-2 network Botanix announced it would close its doors amid declining demand, while mobile game “Pudgy Party” from Mythical Games and the Ethereum-based NFT collection Pudgy Penguins did much the same. 

Those join crypto company shutdowns from earlier this year, impacting firms across the crypto ecosystem like infrastructure firm Syndicate Labs, NFT marketplace Nifty Gateway, and DeFi lender ZeroLend.

The market’s brutality led Cardano founder Charles Hoskinson to warn his network’s community of a “wave of failures” expected as a result of financial constraints. Major firms in the crypto world like Coinbase, Robinhood, Block, and Crypto.com have also conducted sizable layoffs so far this year.

Source: https://decrypt.co/371435/coinbase-backed-crypto-perps-exchange-satori-finance-shutting-down