Web3 startups close as exchanges wind down

A wave of shutdowns and product wind-downs is affecting crypto exchanges, decentralized finance protocols, NFT marketplaces, gaming projects and infrastructure providers. Two established exchanges this month announced formal exit plans while banks and asset managers expand tokenized instruments on blockchain rails.

BitMEX announced on July 22 that it will end exchange services on Sept. 23. The firm stopped new user registrations immediately, will restrict new positions from Aug. 26 and will allow account access for withdrawals after the trading platform closes. BitMart announced on July 26 a phased wind-down: trading is scheduled to end on Aug. 26 and formal platform operations are planned to cease on Jan. 31, 2027. BitMEX described the timing as the result of a strategic review of its business and the wider industry. BitMart cited operating conditions, the market environment and its future direction.

A publicly shared compilation lists dozens of projects, exchanges, protocols, wallets, games and analytics products that have shut down, scaled back or restructured in 2026. Examples include Balancer Labs, which is winding down its corporate entity after a 2025 exploit and shortfalls in revenue while keeping the protocol active through a DAO, foundation and service providers; Polygon’s zkEVM Mainnet Beta sequencer, which stopped on July 1 after users were given migration and claim windows; and Nifty Gateway, which closed its standalone marketplace as NFT support moved to a wallet service. Across Protocol’s bridge remained live in July, but a planned cash-or-equity portal for token holders has been delayed by legal and operational work.

Closures and product sunsets have touched consumer and gaming projects such as Pirate Nation, Ember Sword and Nyan Heroes. Infrastructure and analytics providers including Blocknative, Parsec and TapTools have pared offerings or ceased operations. Some events represent full company shutdowns, others are corporate restructurings, coordinated product retirements or transitions from company-led models to DAOs and third-party service providers.

Executives and boards typically move to wind down after months of weak revenue, financing pressures or legal challenges. Balancer’s founder attributed the corporate wind-down to fallout from a 2025 exploit and the entity’s lack of sustainable revenue. Polygon framed its sequencer retirement as product consolidation and provided migration paths for affected users.

Market conditions provide context. On July 28, Bitcoin traded at $63,416, about 49.7% below its Oct. 6, 2025 peak of $126,198. Past bear markets registered deeper final lows: declines near 87% in 2014–15, 84% in 2017–18 and 77% in 2021–22. Analysts monitor metrics such as losses among long-term holders, fund flows and trading volume to assess market depth and demand.

While many crypto-native firms shrink or close, established financial institutions are increasing use of tokenized assets. International monetary authorities describe tokenized bank deposits as digital representations of commercial-bank liabilities that operate within existing regulatory frameworks. Central-bank and commercial-bank money, government bonds and other assets are being considered for programmable infrastructure tied to trusted balance sheets. Industry initiatives include a ledger project involving multiple banks and tokenized money-market funds launched on Ethereum-based rails by a large custodian bank.

Institutional tokenization tends to concentrate activity around selected issuers, banks, fund managers, compliance providers and approved infrastructure. At the same time, many crypto firms face decisions about sustainable business models and how tokens capture economic value.

Not all recent changes are closures. Some teams are transferring operations to DAOs or foundations, some are consolidating products with long notice periods, and some protocols remain live while corporate entities reorganize. The announcements in recent months document a reduction in the startup layer across exchanges, DeFi, NFTs, gaming and infrastructure, while institutional projects continue on regulated terms.