LBRY Inc. to Cease Operations Amid Massive Debt, Blockchain and Odysee to Continue Functioning
Summary:
Blockchain firm LBRY Inc. has announced it will cease operations due to insurmountable debt. All executives, employees, and board members have resigned to focus on fulfilling the legal obligations of the company. However, the LBRY blockchain and Odysee, its associated video-sharing platform, will continue to operate. Odysee had over 5.3 million monthly users from January to April this year, according to CoinGecko. The community has come forward to express support and merit for LBRY's work since their announcement.
Grappled with a debt in "several millions", blockchain developer LBRY Inc., known for creating the LBRY blockchain, has decided to cease operations. As demonstrated in their final release appearing on LBRY-powered video-sharing platform Odysee on October 20, and then shared on X, this debt has rendered the continuity of the company unsustainable. LBRY's announcement reassures the community that while Odysee and other assets will transition through a legal process for debt settlement, the LBRY network remains unscathed and Odysee’s potential remains undiminished. They bid adieu, thanking all of those who stood with them in the pursuit of online freedom.
This massive debt to the SEC, LBRY's legal representation, and a private lender generated an insurmountable hurdle, leading to the company's demise. The company admits through an October 19 X post that it's lost a court case against the federal government, is crippled by millions in debt, and inevitably must shut down operations. Initially, in July, LBRY announced their intention to wind down after losing against the SEC, where the latter initially imposed a penalty of $22 million which it subsequently reduced to $111,000 when LBRY’s dire financial situation became apparent. The company sparked hope within the community by lodging an appeal against the SEC in September. Yet, the recent release confirms that they will no longer proceed with their appeal.
Consequently, all the C-suite executives, employees, and board members of LBRY Inc. have now resigned, focusing solely on fulfilling the remaining legal obligations. On October 19, in an X post, Jeremy Kauffman, the former CEO, reminisced about LBRY's eight-year journey in the crypto industry, which was pleasurable despite its bitter end.
Following this announcement, the cryptocurrency community expressed their consolation and support to the LBRY team - “Steve,” an X user, applauded LBRY's "good fight" and “archerships” commended LBRY's network as one of the most practical blockchain-based applications available. The Odysee comments from the LBRY community members have been positive, indicating their intent to uphold Odysee's functionality.
The team stated on Odysee that LBRY’s blockchain, being open-source and decentralized, would continue functioning as long as blocks kept being mined. Odysee accommodated 5.3 million unique monthly users between January and April this year, trouncing the performance of other decentralized social media platforms, as per CoinGecko.
Published At
10/20/2023 5:29:20 AM
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