# Over 60 crypto projects shut down in 2026, led by a16z-backed Yupp, Syndicate, and Entropy > Source: > Published: 2026-06-26 15:32:27+00:00 # Over 60 crypto projects shut down in 2026, led by a16z-backed Yupp, Syndicate, and Entropy Three ventures backed by one of crypto's most prominent VCs collectively burned through $87 million before calling it quits The crypto graveyard is getting crowded. More than 60 projects have shut down in the first half of 2026, and the casualties include some names that had serious money behind them. Three projects backed by Andreessen Horowitz’s crypto arm, a16z, account for a combined $87 million in funding that ultimately went nowhere. Yupp, Syndicate Labs, and Entropy each raised tens of millions, attracted talent, and built products. None of them survived. ## The a16z trio: $87 million, zero survivors Yupp was perhaps the most eye-catching failure. The AI-driven onchain incentives platform raised $33 million in a seed round led by a16z crypto’s Chris Dixon. The project managed to attract 1.3 million users but still couldn’t find a viable product-market fit. By early April 2026, Yupp was done. Syndicate Labs had an even longer runway. The company focused on building on-chain developer tools for DAOs (decentralized autonomous organizations, essentially internet-native governance structures) and Ethereum-based investment clubs. It raised over $27 million, including a $20 million Series A back in 2021, when DAO enthusiasm was at its peak. By May 21, 2026, Syndicate announced it was winding down. The explanation: the market had shifted underneath them. The DAO tooling space that once seemed like it would eat traditional corporate governance turned out to be a much smaller market than anyone projected during the 2021 bull run. Then there’s Entropy, a decentralized custody service that raised $25 million in a 2022 seed round. Entropy tried multiple pivots but nothing stuck. The company announced its closure in January 2026, citing an inability to scale or attract follow-on venture capital. Entropy returned remaining capital to its investors. ## The broader picture is worse than the headlines The three a16z-backed shutdowns are the most recognizable names, but they represent only a fraction of the carnage. At least 20 funded crypto projects closed during Q1 2026 alone, and the total exceeded 60 by mid-year. Bitcoin dropped roughly 23% during the first quarter, creating a hostile environment for any project that relied on favorable market conditions to sustain user interest or raise additional capital. Projects that raised during euphoric periods, particularly 2021 and early 2022, found themselves burning through treasuries while the market contracted around them. ## What this means for investors Yupp’s story is particularly instructive. Attracting 1.3 million users and still failing to find product-market fit suggests that vanity metrics in crypto remain exactly that: vanity. User counts mean little if those users aren’t generating sustainable revenue or meaningful on-chain activity. Entropy’s decision to return capital to investors rather than burning through every last dollar sets a precedent that more founders should follow. **Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our [Editorial Policy](https://cryptobriefing.com/editorial-policy/).