Veil To Close Blockchain Prediction Markets And Derivatives Platform Only Six Months After Opening
Six months after it was started, Veil the peer-to-peer prediction markets as well as a derivative platform that was created on top of Augur 0x and Ethereum is closing shop.
In a Medium blog, Veil co-founder and CEO, Paul Fletcher-Hill broke the news saying that no new markets will be included in the platform. Veil users have until July 24 to trade in the existing markets. After 24th July Veil will still be in existence until Augur v2 launches.
Veil was started to enable Augur’s platform to become accessible to the mainstream users and allows users to build and trade prediction markets on various topics ranging from sports, to elections, to crypto prices.
Fletcher-Hill advises Veil users to redeem their open positions in expired markets and all the settlement fees have been waived and users will not have to pay gas. He also directs users to withdraw any positions in active markets by either selling the positions through Augur or waiting until the markets are over and then redeeming them using Augur. Thirdly, users should withdraw their Veil Ether and convert it to Ether.
According to Fletcher-Hill the project failed due to three major reasons. The first one was that the firm tried too much, saying that they generalized the prediction markets and focused versions were better than them. Secondly, the firm failed to offer good onboarding experience. The CEO said that the industry was still young. He added,
“we didn’t make it easy enough for users without crypto or a wallet to get started.”
The CEO also blamed the fact that the platform was not decentralized and regulated as one of the reasons it was closing down. He explained that some users preferred fully decentralized and regulated products and it was hard to offer something in between which people would find valuable.
The CEO said that in the near future he will provide a detailed report on the Veil product. This will help the community to avoid similar mistakes the startup committed or even inspire new teams to take over from where they stopped.
The CEO, however, revealed that the Veil team and the entire company will remain intact and is working on “higher impact products and services” which will be launched in the near future. He added that Predictions.Global explorer, which Veil bought at the start of this year will still continue operating.
What do you think may have led to the closure of the Veil product? Share with us in the comments section.