Between 2025 and 2026, many protocols shut down. It isn't a Web3 crisis; rather, it involves unsustainable campaigns or protocols acting in bad faith. The latest shutdown is Abstract Chain, but many other protocols and chains could be cited: from Blast to Balancer, Stride (on Cosmos), Swellchain, Zetachain, Polygon zkEVM, Sophon, Loopring (formerly a "tip token" here on Publish0x), Harmony, Pryzm, Lisk, Radiant Capital, DappRadar, LogX, ZKlend, Rage Trade, Satori, Polynomial, Odos Aggregator, Slingshot, Connext, Zapper, SoundXYZ, and Step Finance, as well as centralized exchanges like BitMEX, BitMart and AscendEX.
THE REASONS
Often, a chain or protocol simply falls out of fashion, meaning it no longer generates enough revenue to cover operating costs. In other cases, incentives (such as token farming or airdrop promises) run out, making it impossible to attract liquidity and consequently, users and traffic. Sometimes, the governance token is continuously dumped until there is nothing left to sell (which is why you shouldn't hold altcoins; 99% meet this fate). What really causes dissatisfaction, however, are excessive "milking" campaigns that ultimately lead nowhere a waste of time and money. Take Abstract Chain, for example.
Other lesser-known examples include Polynomial and Satori Finance: users farm XP through quests, gaming and trading, only for the protocol to announce its closure after two years without ever holding a Token Generation Event (TGE). This situation breeds growing distrust in farming and altcoins, driving long-term capital toward Bitcoin (which, if you think about it, isn't a bad thing).
ABSTRACT CHAIN SHUTDOWN
Personally, I only used Abstract for a month (20$ fees/badges). You know I’m a big airdrop farmer, yet the expensive badges and certain quests struck me as suspicious right away. Sure, Igloo Inc and Pudgy Penguins were behind it, but I’d already been burned by Scroll and Linea. You learn from your mistakes.
A protocol generating $10M in fees through inorganic quests... why would it turn around and give you back $30M? It just doesn't make sense. It’s a bit like the old "send 1 ETH and I’ll send you 2" scam. Granted, quests drive activity—which can lead to VC funding rounds—but if a protocol makes you mint hundreds of useless badges costing several dollars each, that’s a major red flag. I’ve read about users spending 10k, 20k, 30k, etc., only to see that disappointing announcement yesterday.
Keep in mind that quests don't represent organic revenue; they don't last forever. What really pissed off many in the community were certain statements, lies, and the arrogance shown by team members—though, you know, these people are selling a product. They aren't going to tell you things aren't going well (in yesterday's announcement, the team admitted that things had been going downhill for over a year due to unsustainable costs and that they were seeking alternative solutions. They certainly found some by continuing to siphon funds from the community but if, after two years, you still haven't realized you're a cash cow...well, the gullible user is partly to blame, too).
It also appears a team member sold off $PENGU about a week prior, a case of insider trading ahead of an announcement that would negatively impact the Pudgy Penguins token's price action.
FINAL THOUGHTS
Airdrops aren't scams, and some can be life-changing; you simply need to distinguish the good ones from the ones that are just out to extract value (cash grab). Here are a few tips regarding airdrops and the crypto world in general:
1) Don't invest in altcoins (with rare exceptions: $ETH, $HYPE, $SOL).
2) Don't hold altcoins (with rare exceptions).
3) Any project that keeps extending farming seasons is a red flag.
4) Quests requiring you to mint badges for several dollars are suspicious (Scroll, Linea, Abstract, etc.).
5) Protocols relying on inorganic traffic for revenue don't last long. It isn't sustainable. Users get bored; once the quests are over, the party’s over.
6) The same applies to protocols that attract traffic through XP farming. There are life-changing airdrops out there (think of Hyperliquid and others yet to come), but you have to distinguish the good ones from the "milkers".
Article always updated with all the possibilities of on-chain farming (airdrop): Some Sites To Earn Crypto Bonus (Old & New)
