LBRY going under is basically a shitcoin rug pull. It was decentralization theatre. Their investors did not really want a decentralized solution, because if they a actually built that they wouldn't be able to rug it.

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Disagree.

The concept was using IPFS to host and the incentive was for people to run those servers kind of like running a node.

The issue is that they tried to operate like a proper business.

The rug pull was state oriented.