Sophon sets asset withdrawal deadline before Base migration and mainnet shutdown
Crypto project Sophon is moving toward the closure of its standalone Ethereum layer-2 network, giving users until Nov. 25 to remove funds from the chain. The deadline comes months after the company said it would abandon its existing blockchain infrastructure and shift operations to Base to cut costs and refocus on consumer finance and AI applications.
Highlights
- Sophon will shut down its mainnet and infrastructure on Nov. 25, urging users to withdraw assets and claim rewards or risk losses.
- Sophon, originally backed by a $60 million node sale and a $10 million funding round, cites unsustainable standalone blockchain costs for its migration to Base.
- Abstract, another consumer Ethereum layer-2 from Igloo, will also close on Dec. 15 after significant losses, reflecting broader cost pressures in the sector.
Shutdown timetable and user asset risks
As reported by Cointelegraph, Sophon said Monday it will start shutting down key infrastructure and related websites on Nov. 25 as part of its planned mainnet closure.The team is asking users to withdraw Sophon, Ether, USDC and other assets from the Sophon Chain before that date, warning that any holdings left on the network risk becoming permanently inaccessible. Users are also being told to claim any outstanding staking or Guardian rewards before the shutdown process advances.
Sophon launched as a zero-knowledge-powered Ethereum layer-2 network aimed at consumer use cases including gaming, entertainment and AI. In June, its developers said the cost of maintaining a standalone blockchain no longer justified the benefits, prompting the decision to move operations to Base.
Layer-2 cost pressures reshape the sector
The closure adds to signs of financial strain among consumer-focused Ethereum scaling projects, where operating independent networks is becoming harder to justify without sustained user growth or revenue. Sophon had previously raised $60 million through a node sale in 2024, after a separate $10 million funding round, according to earlier reporting.The move also follows a similar decision by Abstract, another consumer-focused Ethereum layer-2 network developed by Igloo, the parent company of Pudgy Penguins. Abstract said on Oct. 6 that it will shut down on Dec. 15 after Igloo lost tens of millions of dollars supporting the network, underscoring mounting cost and profitability challenges across the sector.
Our earlier coverage of the U.S. AI data center boom highlighted how soaring funding costs, construction delays, and power constraints are undermining ambitious expansion plans. We noted that only a fraction of proposed projects look realistic, while cost overruns and tighter investor sentiment are increasing the risk that developers cannot deliver on timelines or returns.
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