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Update on DOOR

Update on DOOR Operations and Business Highlights
Dear DOOR Community,
I hope this message finds you well. I wanted to provide an update on the current status of DOOR operations and share some insights into the challenges we've been facing in the crypto market.
There are three major restrictions that are beyond our control and are impacting our ability to operate effectively:
  1. 1.
    Lack of Regulation and Clarity from SEC: One of the significant challenges we've encountered is the lack of clear regulation from the SEC. There is a strong possibility that DOOR may be considered a security. When we initially launched DOOR, our intention was to establish its utility to preemptively address regulatory concerns. Unfortunately, the current discussions around crypto regulation suggest that the SEC may classify most cryptocurrencies as securities. This uncertainty has had a detrimental effect on the entire crypto industry, leading to the closure of many crypto exchanges and projects.
  2. 2.
    Lack of Appetite for Buying Crypto: Over the past two years, we've observed a decline in the appetite for purchasing cryptocurrencies. This decline is primarily due to the limited user base, low liquidity, and the speculative nature of the crypto market during bull markets. As a result, we've entered a challenging period often referred to as a "crypto winter."
  3. 3.
    Impact of the Bull Market's End: When the bull market reached its end, signified by the bankruptcy of some major crypto exchanges, a massive sell-off occurred, affecting liquidity pools, including DOOR's. While we implemented restrictions to preserve liquidity, the absence of buyers eventually depleted our reserves. It's important to note that none of the core holders, including myself, ever sold DOOR. With over 5000 holders and limited liquidity, it became challenging to support the token's price.
This outlines the reasons for the stagnation on the cryptocurrency side of our business. However, I want to emphasize that the business side is still operational, albeit with limited resources. Here are some highlights:
  1. 1.
    APP UPDATE: The DOOR app and wallet are still operational, and we continue to attract users. I am personally covering the annual cost of operating and maintaining the servers, software, and infrastructure, which amounts to $60,000/yr.
  2. 2.
    USER UPDATE: DOOR users continue to receive DOOR tokens as rewards, and we continue to distribute NIL to athletes through our app. Both systems are functioning as planned. However, the challenges we face with the DOOR app stem from its primary focus on crypto-oriented news and ads. The app's usage and user acquisition will likely remain limited until there is a significant resurgence of interest in crypto, as I mentioned earlier.
  3. 3.
    COMMUNITY: We recently made the decision to shut down our Discord channel, which was intended for community interaction. We still offer support via email and provide updates through our Gitbook and newsletter. We took this step for several reasons, including the largely negative and unproductive nature of the chat and our limited capacity to manage it on a daily basis. In line with the decentralized nature of our business model, we had hoped for more community contributions, which unfortunately did not materialize. Conversations within the crypto community were primarily centered around frustration regarding the token's declining value.
As someone deeply invested in DOOR, I understand the concerns and questions that holders may have. Here are some key takeaways:
  1. 1.
    Crypto's Fascinating, Yet Challenging Nature: The cryptocurrency market remains a captivating space, albeit one rife with risks, fraud, and volatility. DOOR was designed with an awareness of these challenges, but it is a long-term endeavor, and we couldn't insulate ourselves entirely from the general behavior of crypto investors during market shifts.
  2. 2.
    Challenges in Attracting Crypto Investors: It is challenging to attract investors to any crypto, including DOOR, in an environment marked by market uncertainty. The early enthusiasm for crypto has waned, and the next bull market, when it occurs, is likely to be different. An encouraging aspect is that DOOR possesses utility, an app, and an active user base—features that distinguish it from the majority of other tokens. DOOR could benefit from the changing landscape in the crypto space.
  3. 3.
    Dependence on Market Cycles and Regulation: The future of DOOR is closely tied to the next market cycle and regulatory developments. Until these factors become clearer on the horizon, we must maintain our resolve and "Hold the Door."
I appreciate your continued support and understanding during these challenging times. We remain committed to the DOOR project and will keep you updated as developments unfold.
Last modified 4mo ago