Protos reported that BounceBit, a bitcoin restaking firm backed by YZi Labs, said it will shut down its blockchain after hackers exploited an authorization flaw and stole more than $3.1 million in BB tokens. BounceBit said attackers moved 286 million BB tokens from nine wallets between Aug. 19 and Aug. 20. It also said the attacker sent about 254 million BB tokens to one major crypto exchange, nearly 10 million to another exchange, and left 18.5 million BB tokens in a consolidated address. In a statement on X, the company said it had paused nodes and temporarily disabled BB transactions on the chain, while its CeDeFi app, smart contracts and vaults were not affected. BounceBit said it cannot carry out a normal network upgrade because the chain is built on discontinued Evmos infrastructure. Instead, all BB tokens except those tied to the attacker will be reissued as BEP-20 tokens on BNB Chain based on a snapshot taken before the exploit. The company also said it has asked exchanges to freeze specific addresses, and told token holders they do not need to take action but should watch out for scammers. Protos added that BounceBit raised $6 million in a 2024 seed round co-led by Blockchain Capital and Breyer Capital, and that YZi Labs later invested in April 2024, according to Binance Square moderator Tang Hua.

BounceBit said its blockchain network was hit by a protocol-level exploit between 21:02 UTC on Aug. 19 and 01:54 UTC on Aug. 20, after an attacker abused an authorization flaw in the underlying Evmos architecture. According to the project, the attacker moved about 286.5 million BB tokens from nine mainnet accounts across 14 transactions without account owners’ approval. The team said the incident was limited to BounceBit Chain and did not involve private key leaks, forged signatures, wallets, hardware devices, or exchange account security. It also said BounceBit CeDeFi Strategy, Promo Vaults, Prime, and RWA products were unaffected. After the attack, BounceBit Chain stopped producing blocks at height 20,702,857. The team decided against a chain upgrade and will permanently shut down BounceBit Chain instead. BB will be reissued as a BEP-20 token on BNB Chain, based on an onchain snapshot taken before the first abnormal transfer at block height 20,697,260. BounceBit said the 286,543,148 BB moved by the attacker will not be included in balances for the new token. Users do not need to file claims or migrate wallets manually, and staked BB will be restored based on the snapshot.

A Foresight News review of public disclosures found that since the start of 2025, at least 78 Web3 projects that had each raised more than $1.5 million have announced closures. Among 69 projects with confirmed funding data, total capital raised exceeded $900 million. If smaller teams that never secured institutional backing but quietly disappeared are included, the total number of failed projects rises well above 300. The report says closures have accelerated rather than eased. In a tracked group of 75 projects, 37 shut down in 2025, while 41 had already closed by the halfway mark of 2026. Seventeen closures were recorded in the second quarter of 2026 alone, the highest quarterly figure in the current shakeout. Lack of funding was the leading cause, affecting 31 projects, followed by weak market demand, which accounted for 17 closures. DeFi was the hardest-hit segment, but gaming, NFT, metaverse, Layer 1, Layer 2 and infrastructure projects also saw heavy attrition. The report argues that large venture rounds did not protect teams from failure and points instead to a market that now demands real revenue, real usage and sustainable business models rather than narrative alone.

Canto, an EVM-compatible blockchain built on Cosmos SDK, gained attention for its high-yield liquidity mining and community-driven model. This article reviews its tokenomics, onboarding process, DeFi incentives, and the sustainability risks behind rapid TVL growth.

Canto, an EVM-compatible blockchain built with Cosmos SDK, has gained attention through aggressive liquidity incentives and rapid TVL growth. But high yields come with inflation, liquidation, and liquidity risks that investors should watch closely.