Blockchain-based travel booking platform Winding Tree has shut down, in part due to what CEO Maksim Izmaylov said was a lack of readiness for the travel industry to embrace the technology.
In a letter posted to Winding Tree's website, Izmaylov said the company had "failed to find a market fit" in the travel industry since its launch, in part due to a slow understanding of blockchain technology in the industry. "A coordinated effort of travel companies is required for something like Winding Tree to thrive," Izmaylov said. "Still, even in 2024, only a few people understand its proposition."
He cited the adoption pace of cryptocurrencies as another stumbling block, saying he was "dispirited" while attending a recent crypto event that didn't showcase any products "remotely resembling anything useful" for those not experienced in cryptocurrency.
"No amount of gm's and wagmi's (crypto adherents' cheerful slang) would be enough to lift your spirits when you see that in the industry constantly discussing mass adoption, little is being done to act on it," Izmaylov said. "I approached multiple CEOs of big, well-known crypto projects to address this, suggesting that travel is maybe the only real use-case, to no avail."
Travel technology provider Simard, which was launched to provide corporate travel solutions based on the Winding Tree blockchain travel marketplace, already announced it was being "wound down" and "withdrawn" a few months ago. In his letter, Izmaylov noted that EY, which was working with Winding Tree on a blockchain booking project, had canceled the project when "management changed."
While development on Winding Tree is "frozen," the company has maintained a "small cache of stablecoins" that could "kickstart" the project again when a "critical mass of crypto-savvy travel companies enters the market," according to Izmaylov. Winding Tree also has published its projects' code on its GitHub developer platform site and will consult with companies on use of crypto in travel, he said.
"The founding team firmly believes that our ideas hold true," Izmaylov wrote. "What's not right is the timing."