The Loopring blockchain team made a tough decision to close down their decentralized exchange and automated marketing company. The developers honestly admitted that the protocol never managed to gain widespread acceptance among users. The main reasons for failure are a lack of competencies in business development, as well as fierce competition from more modern solutions based on zkEVM.

Loopring’s architecture has been vulnerable to market evolution. The lack of a fully-fledged virtual machine and compatibility with Ethereum’s smart contracts deprived the project of real use scenarios and limited the ecosystem growth. The situation was further exacerbated by the delimitation of the LRC’s native token with the largest crypto-mining company this year, which ultimately undermined liquidity and interest in the platform.

Despite the service closure, user funds will not be lost. The team initiated a process of direct return of assets to personal Ethereum wallets of customers. The developers will calculate the final balance sheets themselves and cover all network commission costs. Payments will be made in installments to all owners whose funds exceed the ten-dollar threshold, and preliminary checklists will be published within two weeks.