Crypto Downturn Continues as Lina and Switchboard Projects Shut Down

a16z-backed Layer 1 network Lina and permissionless oracle protocol Switchboard have both announced project closures within a single day.

According to RootData, over 260 crypto projects have already shut down this year, with more expected to be added to the 2026 list.

Lina halted operations immediately and permanently on September 18, ahead of its mainnet launch. The Sonar platform sale secured only $900,000 in commitments, falling short of the $1.5 million USDC target, leading to full refunds for all investors.

The team attempted emergency fundraising to reach mainnet but failed. Lina raised a total of $12 million across two seed rounds, with a16z Crypto leading the first in 2022 and Borderless Capital heading the second in 2023.

Lina has shut down its app and Discord server, with points balances remaining recorded but no guarantees of future rewards.

Switchboard Technologies announced its closure on September 19, advising developers to migrate to alternatives like Pyth and Redstone. The company cited market conditions as the reason, noting AI tools have significantly reduced oracle setup costs, while crypto bear markets have led to fewer new chain launches and tighter budgets.

RootData aggregates bankruptcies, shutdown announcements, and long-term dormant sites, with over 200 entries showing diverse outcomes. The downturn has accelerated industry consolidation, with hacks also contributing to project closures.