Funding and revenue: the two ledgers of project survival
Funding is like adding water to a tank; revenue is like a steady inflow. Even if the tank was once full, you still need to consider how quickly it is being drained.
According to a report by Sam Bourgi in Cointelegraph on October 20, 2026, a list of project shutdowns compiled by researcher Stacy Muur mentions Balancer, Radiant Capital, Neon EVM, and Step Finance. The report separately discusses Blast’s announcement that it would shut down, saying it could not find a credible path to economic viability. These cases are all relayed from the report and have not been independently verified.
The DeFiLlama research cited in the report lists a mismatch between product and market demand, depleted funds, and insufficient revenue as common reasons for shutdowns. Some projects also experienced security incidents; the specific reasons need to be examined case by case.
In my view, funding answers the question, “How much longer can the project keep spending?” Operating revenue answers, “Can it keep running sustainably?” During due diligence, you can ask: After subsidies are reduced, what reason will users still have to use the product? How much of the fees collected by the protocol actually stays with the project? Has the team disclosed its cash burn and progress in handling security incidents?
It is especially important to distinguish total fees from the project’s actual revenue, then assess whether that revenue can cover expenses. If information is missing, leave the conclusion open for now. Hype can be easy to see, but operating capability takes time to investigate. 🙂
Crypto Industry Observations Project Due Diligence Risk Management
Reference: Sam Bourgi, 2026-10-20T19:59:39.322000+00:00 (link: https://cointelegraph.com/news/crypto-project-shutdowns-2026-what-went-wrong).
The content above is for reference only and does not constitute investment advice. Markets involve risk; invest with caution.
Funding is like adding water to a tank; revenue is like a steady inflow. Even if the tank was once full, you still need to consider how quickly it is being drained.
According to a report by Sam Bourgi in Cointelegraph on October 20, 2026, a list of project shutdowns compiled by researcher Stacy Muur mentions Balancer, Radiant Capital, Neon EVM, and Step Finance. The report separately discusses Blast’s announcement that it would shut down, saying it could not find a credible path to economic viability. These cases are all relayed from the report and have not been independently verified.
The DeFiLlama research cited in the report lists a mismatch between product and market demand, depleted funds, and insufficient revenue as common reasons for shutdowns. Some projects also experienced security incidents; the specific reasons need to be examined case by case.
In my view, funding answers the question, “How much longer can the project keep spending?” Operating revenue answers, “Can it keep running sustainably?” During due diligence, you can ask: After subsidies are reduced, what reason will users still have to use the product? How much of the fees collected by the protocol actually stays with the project? Has the team disclosed its cash burn and progress in handling security incidents?
It is especially important to distinguish total fees from the project’s actual revenue, then assess whether that revenue can cover expenses. If information is missing, leave the conclusion open for now. Hype can be easy to see, but operating capability takes time to investigate. 🙂
Crypto Industry Observations Project Due Diligence Risk Management
Reference: Sam Bourgi, 2026-10-20T19:59:39.322000+00:00 (link: https://cointelegraph.com/news/crypto-project-shutdowns-2026-what-went-wrong).
The content above is for reference only and does not constitute investment advice. Markets involve risk; invest with caution.