The crypto landscape continues to feel the icy touch of the prolonged downturn, forcing many projects to reconsider their future, with some thinking about scaling down or shutting down completely.

LBRY, a decentralized platform for content sharing and publishing, is the newest casualty of these challenging market circumstances. The team behind the LBRY blockchain acknowledged the harsh reality they're in.

In a grave declaration, LBRY admitted to losing a legal battle against the US government and shared that it has outstanding debts with the US Securities and Exchange Commission (SEC), its attorneys, and another creditor, which they are unable to settle. Consequently, its assets, including Odysee, have been placed in receivership.

By the time this news broke, the top leadership, staff, and board members of LBRY had already stepped down. While they remain dedicated to meeting any remaining legal commitments, their involvement stops there. There are now growing concerns that the decentralized LBRY blockchain could also face extinction.

The blockchain company LBRY, facing an SEC judgment, was initially slapped with a $22 million fine. However, this was later reduced to $111,000 due to LBRY's financial limitations. By September, LBRY challenged the SEC's ruling in the United States Court of Appeals for the Second Circuit.

This week, SuperDao, a supporter of decentralized autonomous organizations (DAOs), decided to shut down due to "unprofitability," despite raising $10.5 million in 2021. They had aimed to advertise at the 2022 Super Bowl but were outbid by rivals like FTX and Crypto.com.

Yield Protocol, a decentralized finance platform, also closed its doors due to low demand and regulatory issues after thorough deliberation.

NFT platform RECUR terminated operations, even after raising $50 million nearly two years ago. Similarly, Nifty’s, a platform for Web3 creators, announced its closure in August, struggling with funding despite a recent focus shift.