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  • Anti-Big Tech Rival Cohost Shuts Down Amid Funding Crisis
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Anti-Big Tech Rival Cohost Shuts Down Amid Funding Crisis

nets45 September 12, 2024
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Cohost, the platform launched with a manifesto against Big Tech, is officially shutting down after failing to secure the necessary financial stability to sustain its operations. The site will transition to a read-only mode on October 2, 2024, with the team aiming to keep servers running through the end of the year.

Data Preservation and Ownership Transition

In the coming weeks, the engineering team will prioritize enhancing the platform’s data export system. This effort is designed to ensure users can successfully archive their posts before the site goes dark. Additionally, the founders announced that control of the Cohost source code will be transferred to the anonymous individual who provided the majority of the site’s funding.

The Financial Collapse

The company’s demise follows a series of financial updates that began in March 2024. These reports revealed that the platform’s primary investor had become unreachable as funds began to dry up. At the time, Cohost faced an uphill battle: with only 30,000 monthly active users and just 2,630 subscribers, the platform was far from self-sustaining. Facing a monthly deficit of $17,000, the team calculated they would need an additional 3,400 subscribers to break even—a target they ultimately deemed impossible to reach, even after exploring alternative revenue streams like advertising.

The Migration of Displaced Users

As the platform prepares to close, a significant portion of its user base and engineering community is migrating to alternatives like Mastodon and Bluesky. Many are using the hashtag #cohost to reconnect with their former community members while mourning the loss of the niche social network.

A Trend of Failed X Alternatives

Cohost’s closure marks another chapter in the struggle for platforms attempting to challenge X (formerly Twitter) following Elon Musk’s acquisition. Despite a surge in development aimed at capturing disillusioned users, Cohost joins a growing list of failed ventures, including T2 (formerly Pebble) and the micropayment-focused platform Post, both of which ceased operations after struggling to gain sufficient market traction.

Correction 9/12/24, 9:30 PM ET: Due to a typo, the shutdown was originally listed as taking place in ’21 instead of ’24. This has been corrected.

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