Harpie shuts down after failing to sustain Web3 security model

Harpie, a Web3 security platform backed by Coinbase Ventures and OpenSea, announced its immediate closure on March 27, citing an unsustainable business model.  

The platform aimed to create a “theft-free crypto ecosystem” by offering an on-chain firewall that monitored transactions in real-time to prevent hacks, scams, and theft.  

Despite its innovative approach, Harpie struggled to generate sufficient revenue in the competitive Web3 space.  

“We attempted to create a theft-free crypto ecosystem, but unfortunately could not create a sustainable business model around it,” the team stated.  

Harpie raised $4.5 million in funding in 2021, with backing from Dragonfly Capital and other major investors.  

Initially charging a 7% fee on recovered assets, the company later transitioned to a fixed fee of 0.01 ETH per asset in an attempt to stabilie its operations.  

The platform’s shutdown surprised many in the crypto community, given its active promotion and user engagement efforts, including referral programs and giveaways.  

Harpie assured users that pending rewards from its campaigns would be honored and announced plans to develop a utility for transferring vaulted assets securely via its website.  

Users were advised to disconnect their wallets from Harpie’s RPC immediately to avoid transaction failures.

Harpie’s shutdown leaves a gap in the market for wallet protection tools, with alternatives like GoPlus Security and Kerberus Sentinel3 gaining attention as potential replacements.  

The company expressed hope that its efforts would inspire others to continue addressing security challenges in the blockchain industry.