DAOstack Shuts Down After Raising $30M, GEN Token Drops 99.99%

DAOstack, a pioneering project in the decentralized autonomous organization (DAO) space, officially ceased operations in 2022 after exhausting its financial resources. The shutdown came despite the project having raised approximately $30 million during the 2017-2018 ICO wave. The funds were secured through various rounds, including $21.909 million from a private round, $4.69 million from a presale round, and $3,398,910 from an Initial Coin Offering (ICO) that took place from the fourth quarter of 2017 to May 2018. The primary goal of these fundraisings was to develop a decentralized governance protocol for DAOs.

The token associated with DAOstack, GEN, has also experienced a significant decline in value. The total market cap of DAOstack GEN is currently at $68.18K, with the token price steadily decreasing to almost $0. This decline is particularly notable given that the token's price never reached its financing level at its peak. The token experienced a major drop in May 2021 and has been on a downward trajectory since then. As of the latest data, DAOstack GEN is ranked at $0.001422, having dropped by 2.71% in the last 24 hours.

The impact of DAOstack's shutdown extends beyond its token value. The project's former staff members have gone on to create other ventures, notably Backed Finance, which developed the popular tokenized stock marketplace xStocks. The three co-founders of Backed Finance were previously employees of DAOstack, indicating that the expertise and experience gained from DAOstack have been channeled into new, potentially more successful projects.

The shutdown of DAOstack and the subsequent crash of its token highlight the challenges and risks inherent in the DAO ecosystem. The rapid rise and fall of projects in this space underscore the need for robust governance structures and sustainable business models. The volatility in the crypto market, coupled with internal management decisions, can lead to the swift demise of projects that once held significant promise. This situation serves as a cautionary tale for investors and developers alike, emphasizing the importance of long-term planning and adaptability in the ever-evolving landscape of decentralized technologies.