Linera and Switchboard Cease Operations Amid Ongoing Crypto Bear Market

Two crypto projects announced closures just a day apart, highlighting the continued pressure on the sector in 2026. The a16z‑backed layer‑1 network Linera and the permissionless oracle protocol Switchboard both halted operations, joining a growing list of projects that have folded this year.

Linera shuts down before mainnet launch

On September 18, Linera informed its community that it was ceasing operations immediately and for the foreseeable future. A community funding round on the Sonar platform raised about $848,271 USDC from 617 participants across 69 countries, falling short of the $1.5 million USDC minimum target. All contributions were refunded.

The team had previously raised $12 million in two seed rounds, with a16z Crypto leading the first round in 2022 and Borderless Capital leading the second in 2023. Despite seeking emergency funding to reach mainnet, the effort was unsuccessful. Linera is shutting down its app, closing its Discord server, and preserving points balances in its records, though it cannot guarantee future consideration for those points.

Switchboard winds down amid market slowdown

On September 19, Switchboard Technology Labs announced that it would wind down remaining operations, with final support ending on September 25. Developers were advised to migrate to alternative oracle providers such as Pyth or RedStone.

The statement cited the broader market environment, noting that AI tools have reduced the cost of building oracles, the bear market has slowed new chain launches, and budgets have contracted. The team suggested that the reduced need for data intermediaries has contributed to the decision.

Broader context

RootData’s tracker records more than 260 crypto project closures in 2026, counting bankruptcies, announced shutdowns, and long‑dormant sites. The ongoing bear market, combined with security incidents, continues to thin the field of active projects.