After deep reflection and careful consideration, we have come to a difficult decision that we want to share with you:
TL;DR: 10101 will be winding down its operations by November, 3rd 2024, and we will removing the apps from the app stores by the end of the year.
10101 was built on a bold vision: to enable trading without counterparty risk, fully self-custodial and in the true spirit of decentralization. We embarked on this journey with the belief that we could offer something transformative - a platform where users could trade with confidence, knowing they retained full control over their assets at all times.
Over the past year, we’ve pushed the boundaries of what’s possible in self-custodial trading. We’ve developed and refined a platform that many of you have come to rely on for secure and transparent trading, without the need for intermediaries. Our focus has always been on creating a system where trust is minimized and control is maximized, staying true to the ethos of Bitcoin.
However, as we reflect on our journey, we must acknowledge some of the challenges we've faced. Building a company is hard - building a Bitcoin company is even harder - and building self-custodial services is insanely difficult. Despite our best efforts, we’ve come to realize that the market’s appreciation for self-custodial services is not where we hoped it would be. While we stayed true to our vision of creating a fully self-custodial, trust-minimized platform, it’s clear that many users are more inclined toward the convenience offered by custodial services. This has been evident in the growth of our custodial competitors.
I don’t want to sound too cynical, but it’s also disheartening to witness the lack of support from investors in this space. Many investors seem to be focused on short-term gains, funding projects that, in my opinion, are not fully aligned with the core ethos of Bitcoin - self-custodial, censorship-resistant, and decentralized.
I also recognize that this situation reflects on me as a founder. My inability to effectively sell our vision and garner the necessary support is something I take seriously. It’s a humbling experience, and I consider it a significant learning opportunity. I’ll carry these lessons forward as I continue to grow, both personally and professionally.
Nevertheless, we are incredibly proud of what we have accomplished. Throughout our journey, we joined and won several trophies in hackathons (shoutout to Johns (https://x.com/johnsBeharry) who put up great events), pitched our vision on numerous occasions, and took home several prizes. We were honored to be part of the very first cohort of WolfNYC (https://x.com/_WolfNYC), where we not only participated but also won the pitch contest at the end. These experiences gave us the confidence to keep pushing forward.
We made significant strides in the space, building the first self-custodial trading solution on Bitcoin using Discreet Log Contracts (DLCs) with 10101. We were also pioneers in developing DLC channels and bringing them to the Lightning Network - a feat that wouldn’t have been possible without the incredible contributions from Tibo (https://github.com/Tibo-lg) at CryptoGarage. While doing so, we built the world’s first synthetic stable coin on Lightning - a stable coin without counterparty risk.
Our team has consistently excelled at cryptographic protocols, turning complex concepts into simple, user-friendly applications. This ability to bridge cutting-edge technology with practical usability is something we’ve always prided ourselves on, and it remains one of our greatest achievements.
However, we've done a lot of reflecting, and we know what we have built is not receiving the traction and growth we wanted it to have. We also know it won't scale easily to the masses either, due to technical limitations.
For these reasons, we have made the tough decision to wind down 10101. The platform will remain operational until the end of October. Afterwards we will stop accepting new positions and open positions will expire on November, 3rd 2024 15:00 UTC, after which we will cease our services.
We encourage our users to complete any ongoing positions, close their channels and withdraw their funds into their own wallets.
We are happy to provide guidance and support during this transition period to ensure a smooth wind-down process.
This decision has not been made lightly, and we are deeply grateful to our community, partners, and supporters who have been with us throughout this journey. Your belief in our mission has been invaluable, and we cannot thank you enough for your trust and support.
As we close this chapter, we do so with mixed emotions. While this marks the end of 10101, it also opens the door to new opportunities and challenges ahead. The team and I will continue to challenge the status quo in Bitcoin and build safer and more private financial tools for a better world to come.
Thank you for being a part of 10101. We look forward to what the future holds, and we hope you’ll join us in whatever comes next.
Cheers, Philipp
