TruStory, a token-based digital debate platform, is shutting down after raising $3 million from notable investors in 2018.
In a blog post published Thursday, Preethi Kasireddy, founder of TruStory, said the platform is closing because its business model is “unsustainable.”
“In order to build a sustainable business, TruStory would need millions of users who can readily purchase tokens (legally) and seamlessly use them on the platform daily. While we believe we can capture a small niche of users, we don’t believe it’s large enough to build a sustainable business,” said Kasireddy.
TruStory is “simply too early to market,” she added.
Founded in 2018, TruStory allowed users to participate in “productive” debates by staking tokens called “TRU.” Users who wrote compelling arguments on the platform earned TRU tokens, while those who “misbehaved,” lost their stakes.
TruStory is backed by notable investors, including True Ventures, Pantera Capital and Coinbase Ventures, among others. As the platform is now shutting down, Kasireddy said investors will be returned their money.
It is not clear if all of investors' money will be returned or what is left after all expenses. The Block has reached out to Kasireddy for clarification and will update this story if we hear back.