Crypto Bear Market Claims 2 More: Linera and Switchboard Shut Down Back to Back

Two crypto projects, a16z-backed layer-1 network Linera and permissionless oracle protocol Switchboard, announced closures a day apart.

The shutdowns land in a year that has already buried more than 260 crypto projects, according to the tracker RootData, which is still adding names to its 2026 list.

Linera Ran Out of Road Before Mainnet

Linera told its community on September 18 that it had ceased operations immediately and for the foreseeable future. A sale on the Sonar platform attracted close to $900,000 in commitments, below the $1.5 million USDC minimum target. Thus, the team refunded every contribution.

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The $LNRA Community Round commitment period has now ended.Unfortunately, we fell short of our $1.5m USDC minimum targetWe truly appreciate the interest from the 617 participants from 69 difference countries who pledged a combined $848,271 USDC to $LNRAThe…

— Linera ⛓️ (@linera_io) September 9, 2026

The team then looked for emergency funding to carry the company to mainnet, but the efforts did not succeed. Linera had raised $12 million across two seed rounds, with a16z crypto leading the first in 2022 and Borderless Capital leading the second in 2023.

Linera is switching off the app and closing its Discord server. Points balances will be preserved in the records, though the team said outright that it cannot guarantee 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 Points to AI and the Crypto Bear Market

Switchboard Technology Labs followed on September 19. It told developers to move to providers such as 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.

Its statement blamed the market around it rather than the product. AI tools have cut the cost of building an oracle, the bear market has slowed new chain launches, and shrunk budgets.

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

RootData counts bankruptcies, announced closures, and long-dormant sites in the same tally, so its 200-plus entries describe very different endings. The bear market has thinned the field, while hacks have also pushed several teams over the line. 

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