Mixwit was a lot of fun for Mike & me to develop and in the end we are both really happy with the results. Way back in the summer we realized that we may have to go "scorched earth" at some point, so we're actually feeling more relief than regret at this point.
We came up with the project a little over a year ago, and started working on it fulltime back in January of 2008. We didn't do any promotion so the project was a huge viral success. The initial seed was a small mention on Techcrunch covering YC Demo Day. Several websites quickly came on board to discuss the possibility of such a project.
The really big push for us was Muxtape, which launched a couple of weeks after us with massive technorati fanfare. I assume it was common for people to mention Mixwit along with Muxtape because Muxtape had the word "tape" in their name and we actually had a "tape" in our product.
Our goal was never to be a playlist service, and especially not a project caught up in questionable legitimacy. As it stands now, we could probably continue running Mixwit as a small project for another year or two, but that's about it.
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