Lisk Shuts Down Blockchain Network, Leaving Void in African Web3 Ecosystem

Swiss-based Web3 infrastructure company Lisk will officially shut down its blockchain network on October 31. The move marks the end of a decade-long experiment and removes one of the few remaining ecosystem companies actively funding early-stage Web3 founders in Africa.

The decision follows an earlier announcement in August and strategic reset initiated in December 2024 when co-founders Max Kordek and Oliver Beddows returned to lead the company. Lisk will now focus on building a financial operations platform for businesses, handling accounts, payments, and approvals across both fiat and stablecoin systems.

Funding Decline in African Web3 Space

The timing couldn’t be worse as Africa’s blockchain companies already experienced a funding slowdown. In 2025, these startups raised $90.1 million across 28 deals—a 26.6% decrease from the previous year, according to Crypto Valley VC (CV VC). While deal volume only slightly declined, this indicates investors are becoming more selective.

Lisk’s Strategy and Impact

Lisk aimed to attract developers by offering grants in its native token (LSK), which founders often converted to stablecoins for immediate use. The company also provided valuable network access—introductions to investors, partners, and other founders—that extended beyond the financial support.

Several African startups benefited from Lisk’s ecosystem:

• Azza, a Nigerian WhatsApp-based stablecoin trading platform
• Jamit, a blockchain creator platform
• Payd, a Kenyan cross-border payments startup

These companies received funding and technical assistance to integrate Lisk into their products.

Challenges of Blockchain Adoption in Africa

The reality is that attracting users to a new blockchain network faces inherent challenges. As with traditional banking, people tend to stick with platforms they already trust and understand—even when better alternatives exist.

Africa’s crypto market has already fragmented across various networks like TRON (popular for USDT transfers) and Ethereum, each with established user bases. Introducing another option requires users to learn new systems, acquire different assets, and potentially move their existing funds.