Linera and Switchboard Close as Crypto Downturn Continues

Two crypto initiatives — the a16z-supported layer-1 blockchain Linera and the open-access oracle network Switchboard — revealed they were ceasing operations within 24 hours of each other.

These shutdowns come amid a year that, per tracker RootData, has seen over 260 crypto projects shut down. RootData continues to add entries to its 2026 tally.

Linera Exhausted Options Prior to Mainnet Launch

On September 18, Linera informed its community that it was stopping operations with immediate effect and for the foreseeable future. A fundraising event on the Sonar platform drew nearly $900,000 in pledges, falling short of the $1.5 million USDC minimum. Consequently, the team returned all funds.

The $LNRA Community Round commitment period has now ended.

Unfortunately, we fell short of our $1.5m USDC minimum target

We truly appreciate the interest from the 617 participants from 69 difference countries who pledged a combined $848,271 USDC to $LNRA

The…
— Linera ⛓️ (@linera_io) September 9, 2026

The developers then sought emergency capital to get the firm to mainnet, but those attempts failed. Linera had secured $12 million through two seed financings: a16z crypto led the initial round in 2022, and Borderless Capital led the subsequent round in 2023.

Linera is deactivating its app and shutting down its Discord server. Points will be recorded and kept on file, but the team stated explicitly that they cannot promise the points will “receive any consideration in the future.”

“The decision does not reflect on the technology, the team, or this community…We know this is not the news you hoped for, and it is not the news we hoped to deliver. We still hope to finish the protocol and launch applications on it in the future,” the announcement read.

Switchboard Attributes Closure to AI and Market Conditions

Switchboard Technology Labs followed suit on September 19, advising developers to transition to alternatives like Pyth or RedStone.

“In light of recent exploits and after having exhausted all possible alternatives, Switchboard Technology Labs Inc. (one of the core development contributors to the Switchboard Protocol & Switchboard Protocol Foundation Group) has made the difficult decision to wind-down remaining operations. Any remaining support will end on 09/25/2026. One week from now,” the team said.

The statement pointed to external factors rather than the product itself. AI tools have reduced the expense of developing an oracle, the downturn has decelerated the launch of new chains, and budgets have been constrained.

“In many ways, crypto has won, there’s less of a need for data intermediaries,” the statement added.

RootData groups bankruptcies, formal shutdowns, and long-inactive sites within the same count, meaning its 200-plus entries reflect widely differing outcomes. The bear market has weeded out participants, and security breaches have also driven some teams to close.