Syndicate Labs, an a16z-backed on-chain development startup, is winding down operations, citing a fundamental shift in the Rollup market and significant market contraction.
Syndicate Labs, a startup backed by venture capital firm a16z, announced it will shut down after five years of building blockchain infrastructure, the company said in an X post.
The on-chain development team cited a fundamental shift in the rollup market and a significant contraction in market size as reasons for the closure. The decision is unrelated to a recent cross-chain bridge exploit, according to the company.
“The market has shifted away from our technology, making it impossible to wait out these market conditions. EVM rollups are no longer the standard,” Syndicate posted. “Instead, custom chains are being built by consulting teams from scratch, with very little reusable tech or network value.”
The company said that while the Syndicate Labs development organization is shutting down, the Syndicate Network Collective, a separate Wyoming Decentralized Unincorporated Nonprofit Association, DUNA, will continue if it finds a successor to take over.
Syndicate had raised more than $27 million in funding since its inception. The startup focused on on-chain development tools and infrastructure for the blockchain ecosystem.
