DMM Crypto shuts Seamoon Protocol amid business issues

DMM Crypto, a subsidiary of Japan’s DMM.com, has announced the discontinuation of its Seamoon Protocol.

The decision marks a significant shift, as the company had been exploring the issuance of a stablecoin just a few months ago to support its ecosystem.

DMM Crypto stated that no new services would be added, and discussions are ongoing regarding the status of existing services on the platform.

The Seamoon Protocol was part of the DM2 Verse on the Oasys (CRYPTO:OAS) layer-2 blockchain, driven by its native SMP token.

It featured Web3 gaming and content, including anime and games produced by DMM.com, the first game launched on the platform, Kanpani Girl Re, will cease operations by January 31, 2025, following the project’s closure.

In a statement shared by finance blogger Norbert Gehrke, DMM Crypto cited “recent rapid changes in the business environment that have created challenges for the project’s sustainability” as the reason for ending the project.

However, specific details on these challenges were not disclosed.

DMM Crypto, which launched in January 2023, had previously collaborated with Progmat in August to explore a stablecoin that would integrate with fiat and credit cards to enhance financial operations within the ecosystem.

This initiative now appears to have been sidelined as the company navigates its current difficulties.

DMM.com has had multiple ventures in the cryptocurrency space, including DMM Bitcoin, which started in 2017.

That exchange was targeted in a significant hack in mid-2024, resulting in a $302 million loss attributed to North Korea’s Lazarus Group.

Affected users were reimbursed by DMM.com.

Meanwhile, Progmat, Seamoon Protocol’s former partner, recently partnered with major Japanese banks, including Mitsubishi UFJ Bank, to develop a stablecoin platform called Project PAX.