Why are multiple crypto companies shutting down right now?

Several crypto firms are closing because weak market conditions have reduced trading activity, investor funding and user growth. Lower crypto prices and shrinking revenues are making it harder for smaller projects to survive.

Which crypto companies recently announced closures?

Recent closures include Fantasy.top, Everclear, ZERO Network, Syndicate Labs and crypto ATM operator Bitcoin Depot, which filed for bankruptcy in the US.

Why did Fantasy.top shut down?

Fantasy.top said its trading volume was not high enough to sustain long-term operations. The company also experimented with prediction markets and other crypto products but failed to achieve durable product-market fit.

What did Fantasy.top’s founders say caused the failure?

Fantasy.top co-founder “Kipit” said the platform tried to force crypto mechanics onto a model not originally built for crypto users. He also said the platform attracted speculative traders instead of dedicated trading card game users.

Why is Everclear shutting down?

Everclear said it failed to generate enough commercial depth and sustainable revenue to continue operating. The company also explored acquisitions and partnerships, but funding reportedly ran out before those strategies became viable.

Why did ZERO Network decide to close?

ZERO Network said it would shut down so parent company Zerion could focus on wallet and onchain data products instead. Management said the crypto market does not need more blockchains but better user access to existing ones.

How bad is the current crypto market downturn?

Bitcoin has fallen roughly 40% from its October peak, while thousands of crypto industry employees have been laid off this year. Many public crypto firms have also reported losses amid weaker market conditions.

Are crypto startups struggling to raise funding now?

Yes, investor appetite has become more selective during the downturn. Analysts say funding is increasingly concentrated in projects linked to institutional finance, tokenization, perpetual futures trading and prediction markets.

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Crypto shutdowns accelerate amid prolonged market downturn

Written by Mahathir BayenaPublished May. 22 2026Last Updated May. 22 2026

At least five crypto firms announced closures or bankruptcy filings this week as prolonged weakness across digital asset markets continued straining revenues, funding and user growth.

Crypto trading card platform Fantasy.top, cross-chain infrastructure protocol Everclear and Ethereum layer-2 blockchain ZERO Network all confirmed Thursday that they were winding down operations after failing to achieve sustainable commercial traction.

The closures followed Ethereum infrastructure company Syndicate Labs announcing it would shut down after five years in a shrinking rollup market, while crypto ATM operator Bitcoin Depot filed for bankruptcy in the United States earlier this week citing financial and regulatory pressure.

Fantasy.top said on X that it would close in June because trading volumes “were not sufficient to sustainably support long-term operations,” despite attempts to pivot into prediction markets and other crypto products.

Fantasy.top co-founder “Kipit” said the platform ultimately failed because it “tried to put crypto on top of a model that was never built for crypto,” attracting users focused on speculation rather than the core trading card experience.

Everclear also confirmed it was winding down the Everclear Foundation and Everclear Labs after failing to generate sufficient revenue, while adding that acquisition discussions and partnership strategies did not materialise quickly enough before its funding runway expired.

ZERO Network said it would shut down to allow parent company Zerion to focus on its wallet and onchain data products, with chief executive Evgeny Yurtaev stating that “the world didn't need more blockchains — it needs a better way to access them.”

The closures come amid a broader crypto market downturn that has seen Bitcoin fall roughly 40% from its October peak, while thousands of industry employees have been laid off this year and only select sectors such as prediction markets and perpetual futures trading continue attracting strong investor demand.

At the time of reporting, Bitcoin price was $77,435.73.