Introduction

Lisk, the Swiss-based Web3 infrastructure company, announced it will shut down its blockchain network on October 31 and redirect remaining operations toward Celo, a rival platform. The move closes the book on a ten-year experiment in building a standalone blockchain ecosystem, particularly in Africa, where Lisk had invested heavily in developer programs, grants, and community building. Its departure leaves a noticeable gap for African founders who relied on Lisk’s funding and network support during a year when Web3 investment across the continent already showed signs of contraction.

What Happened

Lisk’s decision to wind down its blockchain followed months of strategic restructuring. In December 2025, co-founder and former CEO Max Kordek returned to the company alongside ex-CTO Oliver Beddows, who took on the role of chief strategy officer. Kordek stepped down as CEO in 2024 as the Lisk Foundation expanded its focus beyond blockchain. The Onchain Foundation, Lisk’s parent entity, discontinued several initiatives, including its research arm and wallet product, to concentrate resources on a pivot toward a financial operations platform for businesses handling fiat and stablecoin transactions. By May, the company had made several roles redundant, affecting regional leads and business development teams as it pulled back from blockchain expansion. The strategic reset began months earlier, and the shutdown date was confirmed for October 31, with Lisk urging users to withdraw assets before that deadline.

Before the closure, Lisk had seeded several Africa-focused programmes. A six-month incubation hub launched in 2024 in partnership with CV Labs admitted 43 startups across two cohorts, with 11 completing the full cycle. AyaHQ supported more than 35 startups across 25 countries, with 25 receiving Lisk funding. Web3Bridge received $80,000 to establish a developer training garage. By August 2025, Lisk reported that its programmes had trained over 30 startups, and 12 graduates received grants of up to $20,000.

Why This Matters

Lisk’s exit is significant not just because of the company’s size, but because it removes one of the few entities still actively backing early-stage Web3 founders in Africa. In 2025, African blockchain companies raised $90.1 million across 28 deals, a 26.6% decline from 2024, according to Crypto Valley VC. Deal volume fell only slightly from 30 to 28, indicating a more selective funding market. Lisk’s model had been to fund developers, help them build, and rely on user activity to generate network liquidity—a flywheel that the company concluded was unsustainable. The blockchain’s total value locked peaked at about $20.6 million in July 2025 but had collapsed to $143,208 by September 24. Stablecoin market capitalisation fell from $3.3 million to $33,780 in the same period. For founders who received grants often worth about $4,000 in LSK, many converted the token to dollar-backed stablecoins like USDT because the token’s value had fallen below $1. Others highlighted the network introductions, travel opportunities, and commercial partnerships as the more enduring benefit.

The exit also signals a broader shift. Traditional venture capital firms are now cautious about backing blockchain-native startups without clear commercial models, revenue, or links to existing financial infrastructure. Stablecoin businesses have benefited from this scrutiny, but founders building purely blockchain-native infrastructure face a harder funding climate. Lisk’s departure underscores how fragile ecosystem-funded growth can be when the capital engine changes direction.

Key Takeaways

  • Lisk’s blockchain shutdown on October 31 marks the end of a decade-long effort to build a self-sustaining Web3 network in Africa.
  • Total value locked on Lisk’s chain dropped from a peak of $20.6 million in July 2025 to $143,208 by September 24, and stablecoin market capitalisation fell from $3.3 million to $33,780.
  • African Web3 funding declined 26.6% in 2025 to $90.1 million across 28 deals, reflecting a more selective investor climate.
  • Lisk distributed roughly $4,000 grants in LSK to founders, many of whom converted the token to stablecoins for usable cash.
  • The company’s incubation hub, AyaHQ partnership, and Web3Bridge training programme supported over 100 African startups, with 12 graduates receiving follow-on grants of up to $20,000.
  • Lisk is pivoting to a financial operations platform for businesses, signalling a shift away from consumer-facing blockchain infrastructure.

Conclusion

Lisk did not fail for lack of trying. The company spent years building an ecosystem, funding founders, and seeding developer communities across Nigeria, Kenya, and South Africa. However, the economics of maintaining a blockchain without sufficient sustained revenue proved unsustainable, and the pivot to financial software reflects where the company sees its next opportunity. For African founders, the immediate takeaway is that ecosystem funding can be volatile when the sponsoring company redirects its strategy. Yet the relationships and introductions Lisk facilitated continue to benefit some of the startups it supported, and the broader market is adjusting to a funding environment that now demands clearer commercial pathways and regulated distribution. The doors are open for Lisk to sell its financial software to African businesses, a market it already knows well, but the blockchain chapter has closed.