Lisk’s Strategic Shift Leaves Void in African Blockchain Funding

The decision by Swiss-based Lisk to shut down its blockchain network and transition remaining assets to Celo marks a significant shift in the African Web3 landscape. While Lisk had previously been one of the few established ecosystems actively supporting early-stage blockchain founders, its exit creates both challenges and opportunities for the region’s growing digital asset sector.

A Decade-Long Experiment Concludes

Lisk’s journey began in 2016 with ambitious goals to build a foundational blockchain infrastructure. The company underwent a strategic reset led by co-founder Max Kordek, who returned as CEO alongside former CTO Oliver Beddows. This involved consolidating operations and discontinuing several initiatives like the Onchain research arm and Pass App wallet to focus on developing a financial operations platform for businesses.

Funding Decline in African Web3

The timing of Lisk’s departure coincides with an already cooling funding environment for African blockchain startups. According to Crypto Valley VC (CV VC), total funding declined by 26.6% in 2025, reaching $90.1 million across 28 deals—down from 30 the previous year.

The Lisk Model and Its Impact

Lisk’s approach involved providing grants (often around $4,000 in its native token LSK) to developers who integrated the platform into their projects. While this created a network of supported startups like Azza (Nigeria), Jamit (creator platform), and Payd (Kenya), it struggled to translate developer adoption into widespread retail usage.

As one founder noted, “Getting people to use your product is harder than getting them to build on it.” This challenge reflects the reality that blockchain networks compete for users’ attention and liquidity in a fragmented market where preferences are established over time.

What Founders Lost—and Gained

Many founders who received Lisk grants converted their tokens into stablecoins due to immediate business needs. However, they also valued the network effects—introductions to investors, partners, and other builders that extended beyond the financial support itself.

Lisk’s exit underscores a critical point for Web3 ecosystems: building a technology platform is only one piece of the puzzle; attracting users and creating real-world utility requires sustained market development efforts.