Ethereum Project That Raised $20 Million Is Shutting Down: Users Urged to Withdraw

Ethereum-based Layer 2 network Blast announced it would shut down because it could not cover its operating costs, and asked users to withdraw their assets to the Ethereum mainnet through the regular interface by October 26, 2026.

According to the Blast announcement reported by Wu Blockchain, the cost of maintaining the network exceeds the revenue it generates. The team said it could not see a credible path to achieving economic sustainability and decided to shut down.

Blast opened to early access in November 2023 after raising $20 million from investors including Paradigm and Standard Crypto. A transition process is now beginning to move the network’s users’ assets to the Ethereum mainnet.

Withdrawals will pause first, then resume with a 24-hour wait

The first step in preparing for the shutdown will be withdrawing Lido assets. During this process, which is expected to take about one week, user withdrawals will be temporarily unavailable.

Once this phase is complete, withdrawals will resume and the waiting period will be reduced to 24 hours. The team urged users to withdraw their assets on the network, including PWA balances in the Blast app, to the Ethereum mainnet.

How will withdrawals work after October 26?

October 26, 2026, is the deadline for the period during which withdrawals can be made through the regular Blast interface. According to the announcement, assets will remain withdrawable after that date, but users will need to interact directly with Blast bridge contracts on Ethereum.

The team said it would publish detailed instructions for this method before October 26. Users were strongly advised to withdraw their assets before that date while the regular interface is still available.