Coinbase-Backed Router Protocol Announces Shutdown Due to Financial Struggles

Router Protocol, a cross-chain infrastructure project backed by Coinbase, has announced that it will cease operations by September 30. The team stated in a statement on X that they had attempted to commercialize their products and secure a sustainable position in the blockchain bridging sector, but were unable to do so.

The shift of capital from the crypto market towards the AI sector and the decrease in asset transfer fees between blockchains have made it difficult for Router Protocol to continue operations. The team also noted that there is a decline in demand for router services as activity becomes more concentrated on fewer networks and standardized infrastructures.

Rather than finding a buyer or securing additional funding, Router Protocol has decided to permanently burn 303,333,198 ROUTE tokens held in its treasury. This amount represents approximately 30% of the total supply of about 1 billion tokens. The project will also work with centralized exchanges to end support for ROUTE.

The team stated that no new ROUTE programs will be launched and that it will remain independent of any market or liquidity pools created after the delisting process. However, Router Protocol will open-source some components so that developers can use the work done over the past four years.