Lisk Chain Shutdown Sparks Exit Pump, Traders Warned of Incoming Selling Pressure

Lisk Chain, which upgraded to an Ethereum Layer 2 mainnet in 2024, has announced its plans to shut down. The shutdown is scheduled for October 31st, 2026, and will affect the DAO governance system, staking, and all governance-related programs running on the chain.

However, the LSK token itself will not be discontinued. This has created a problem for existing holders, who will need to migrate their tokens from the Lisk Chain to Ethereum before the shutdown.

The process of migration involves unstaking the tokens, which requires a three-day waiting period, and then going through the bridge process to Ethereum. This can take at least seven days due to the optimistic rollup challenge period.

As a result, the LSK token has experienced an exit pump, with its price rising by 344.5% in the past 24 hours to $0.9428. However, this is seen as an 'exit pump,' and traders are advised to exercise caution due to incoming major selling pressure from bears.

Pricesync's founder noted that this is a clear exit pump caused by market makers who have anticipated the lack of future demand for LSK after the shutdown.