Loopring Ends Its Pioneer zk-Rollup DEX After Years of Limited User Adoption

TheNewsCryptoОпубліковано о 2026-06-29Востаннє оновлено о 2026-06-29

Анотація

Loopring has officially shut down its decentralized exchange, ending one of Ethereum's earliest zk-rollup platforms. The project, which raised $45 million in 2017, pioneered scaling solutions but ultimately failed to achieve significant user adoption. The team cited several reasons for the closure: the platform's lack of a virtual machine limited developer innovation, business execution was insufficient, and new zkEVM networks like zkSync and StarkNet surpassed its technology. User funds remain safe, with a two-week balance verification period before direct distribution to wallets begins. This follows the discontinuation of its wallet services in 2025, marking Loopring's complete exit from the DEX business.

Loopring officially shut down its decentralized exchange, marking the end of one of Ethereum’s earliest zk-rollup platforms. All trading functionalities were immediately stopped, and the relayer was turned off right after the official announcement made via Loopring’s X account.

The shutdown ends a project that once demonstrated how zero-knowledge rollups could efficiently scale Ethereum. Loopring raised $45 million through its initial coin offering in 2017.

Despite its technical merits, Loopring acknowledged that users never adopted the platform on a meaningful scale. The team pointed out that the lack of a virtual machine on the platform did not allow developers to compose and develop more advanced real-world applications. Without payment use cases and an evolving ecosystem, Loopring found it difficult to compete with new infrastructure built for blockchain technology.

Source: X Article

Additionally, Loopring admitted it was good at the software but failed to build the business acumen needed to drive adoption. Furthermore, it mentioned that the delisting of the LRC token throughout 2026 only worsened the problems.

New zkEVM Networks Outperformed Loopring’s Technology

Finally, the development team admitted that modern zkEVM-based networks were able to surpass its proprietary technology. New projects such as zkSync, Scroll, and StarkNet created Ethereum-based environments that allowed deploying smart contracts more easily and developing a decentralized applications ecosystem.

The team admitted that it simply did not make sense anymore to continue working on Loopring. This is why the exchange was closed down in an orderly fashion. The project had earlier ended wallet services in July 2025 owing to scaling issues. The latest update marks Loopring’s eventual exit from the original decentralized exchange business.

Direct Distribution of Assets by Team

The Loopring team made assurances that all user funds are still safe despite the imminent closure. Final balances will be computed, an inventory of assets provided, and two weeks allocated to check balances before any distribution can take place.

Distributions will follow after the two-week period, whereby the Loopring team will distribute assets directly to the wallets in batches. The team will automatically convert liquidity pool holdings to the respective token, take care of all gas fees, and undertake the whole process without the need for Merkle proofs.

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Пов'язані питання

QWhat was the official reason given by Loopring for shutting down its decentralized exchange?

ALoopring officially shut down its DEX due to years of limited user adoption. The team acknowledged a lack of business acumen to drive growth, the technical limitation of not having a virtual machine for advanced applications, and the inability to compete with newer zkEVM-based networks like zkSync, Scroll, and StarkNet.

QAccording to the article, what key technological feature did newer zk-rollup projects have that Loopring lacked?

ANewer zk-rollup projects like zkSync, Scroll, and StarkNet are based on zkEVM (Zero-Knowledge Ethereum Virtual Machine) technology. This allowed them to create environments where developers could easily deploy smart contracts and build a decentralized applications ecosystem, surpassing Loopring's proprietary technology which did not include a virtual machine.

QHow will the Loopring team handle the distribution of user assets after the shutdown?

AThe Loopring team will compute final user balances, provide an asset inventory, and allow a two-week period for balance verification. After this, they will distribute assets directly to user wallets in batches. They will automatically convert liquidity pool holdings, cover all gas fees, and conduct the process without requiring Merkle proofs.

QWhat earlier service did Loopring end in July 2025, and why?

ALoopring ended its wallet services in July 2025 due to scaling issues.

QHow much funding did Loopring raise in its 2017 initial coin offering (ICO)?

ALoopring raised $45 million through its initial coin offering (ICO) in 2017.

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