Pioneering Flow Ecosystem Wallet Blocto Announces Closure Amid Funding Crisis and Ecosystem Support Lapses

In a significant development for the Taiwanese blockchain industry and the wider Web3 community, Blocto, the innovative Flow ecosystem wallet developed by startup portto, has made a somber announcement. Citing critical funding depletion and a lack of sustained ecosystem support, Blocto is set to formally cease its wallet and DeFi services.

Once celebrated as the “most user-friendly wallet” and a close collaborator with Dapper Labs, the company behind NBA Top Shot, Blocto is concluding its five-year journey. After serving over two million users globally, the platform will terminate its wallet services by the end of this year, marking a poignant moment for its dedicated community.

A $5.5 Million Burn: The Financial Strain Behind Blocto’s Closure

The Blocto team candidly revealed in their announcement that the primary catalyst for their operational struggles was the precipitous decline of the ecosystem token, $FLOW. Once soaring near $40 in 2021, the token’s value has plummeted by over 99% to below $0.3, creating an unsustainable financial environment.

To maintain the continuity of its services, Blocto independently absorbed over $5.5 million (approximately NT$170 million) in operational losses over the past few years. This significant financial burden, however, proved unsustainable in the long run.

Unanswered Calls: A Plea for Ecosystem Support

Recognizing the impending exhaustion of operating capital, the Blocto team initiated outreach to the leadership of Flow and Dapper Labs in June of this year, seeking collaborative solutions. Despite a diligent six-month effort, their attempts to secure even a single meeting proved fruitless. Prolonged email exchanges yielded no substantial support or constructive dialogue, even as Blocto approached its final financial precipice.

“We no longer have the funds to continue absorbing these costs,” the Blocto team stated with palpable resignation, confirming the difficult decision to conclude their five-year venture.

Urgent Action Required: Asset Withdrawals Before December 19th Deadline

The announcement emphasizes the critical need for users to act promptly. Blocto wallet, its exchange service BloctoSwap, and the cross-chain bridge Blocto Teleport are scheduled for official closure at 11:00 AM Taiwan Time on December 19th (7:00 PM PST on December 18th). Users must complete all asset withdrawals before this deadline to avoid permanent loss of access to their funds:

1. Withdraw Liquidity: Users who have provided liquidity in BloctoSwap are instructed to withdraw their funds immediately.
2. Bridge Cross-Chain Assets: Holders of tUSDT on the Flow chain must promptly bridge these assets back to Ethereum via Blocto Teleport.

Furthermore, users currently operating in “custodial mode,” where Blocto manages private keys, are mandated to manually switch to “non-custodial mode” and export their private keys. Failure to do so will result in the permanent loss of control over their wallet assets.

Blocto officials underscore that the team will never request users’ private keys. Users are strongly cautioned against sharing their private keys with any suspicious individuals claiming to be customer service representatives.

Staking Services Remain Unaffected

In a rare silver lining, Blocto’s node staking services will continue to operate. User assets within this service remain secure. Users are advised to simply import their private keys into other Flow-compatible wallets, such as Lilico, to maintain management of their assets. It is crucial not to hastily unstake, as this could lead to the forfeiture of accumulated rewards.

A Legacy Remembered: Blocto’s Impact on Web3 Adoption

Reflecting on Blocto’s impactful journey, the platform pioneered innovative solutions like email and social account login, significantly lowering the barrier for new users entering the Web3 space. As an early trailblazer within the Flow blockchain, its foundational infrastructure not only empowered millions of users but also forged collaborations with numerous premier intellectual property projects.

“Without you, Blocto would not have reached this point. Even as this chapter closes, we extend our deepest gratitude,” the Blocto team concluded in their farewell statement. This heartfelt message bids adieu to a community that supported them for five years, marking the end of a brilliant yet regrettable chapter in Taiwan’s blockchain history.