Starting from July 11th, the platform will no longer accept new market additions while trading will completely be disabled on July 24. Co-founder of Veil, Paul Fletcher-Hill advised users to make good use of open positions by withdrawing their Veil Ether and converting it to Ether.
Veil was an extension of Augur. Augur is a predictions market that is still in existence, it makes use of smart contracts to allow users to create and bet on any event with Ether. Augur included the option to make use of MakerDAO stablecoin, DAI, on its platform in April.
According to its website, Veil was supposed to “bring Augur mainstream” and improve user experience by ensuring transaction processes to take place seamlessly and fast. Veil allowed users to carry out trades on the Augur marketplace faster using the 0x protocol. It also provides instant settlement by giving users the opportunity to sell their shares to Veil before the finalization of Augur transactions on the blockchain.
What happened to Veil?
Speaking about the reason for shutting down, Fletcher-Hill pointed out several possible causes. One of them is that the platform was not user-friendly enough, especially for people with little or no knowledge about cryptocurrency. He said:
“We didn’t offer a good onboarding experience. Crypto as a user base is still early, and we didn’t make it easy enough for users without crypto or a wallet to get started.”
He also added other reasons like not being decentralized, not being regulated, and maybe offering too many options in a bid to being a broad-scale predictions market. Fletcher-Hill in the blog post wrote:
“… ultimately we failed to find a good fit between what we were building and the market as it exists today. … But today the community of users is small, and we think there are higher impact products and services we can build for the immediate future.”
According to reports, Augur came under scrutiny from Reddit and top crypto exchange Binance for having a design flaw. The flaw made it possible for users to operate scams by allowing predictions with vague or contradictory resolutions.