Lisk Chain is winding down, but LSK explodes 344% in one day

Lisk Chain is winding down, but LSK explodes 344% in one day – Last hurrah?

In an unexpected turn of events, Lisk Chain, which upgraded to an Ethereum [ETH] Layer 2 mainnet in 2024, has announced its plans to shut down.

Schedule for 31 October 2026: the Lisk Chain, along with the DAO governance system, staking, and all the governance-related programs running on the chain, will all be closed down.

However, the token, $LSK, itself is not being discontinued.

Why would holders face the major brunt of this shutdown?

Now this has become a huge problem for existing holders. This is because if the tokens were already on Ethereum or sitting on an exchange, the shutdown would not require the holder to migrate them.

But since $LSK is sitting on the Lisk Chain, the holder would need to move it before the shutdown.

In that process, staked $LSK first needs to be unstaked, which involves a three-day waiting period, and then the tokens would have to go through the bridge process to Ethereum.

This might take at least another seven days because of the optimistic rollup challenge period.

$LSK experiences an exit pump

Needless to say, this has impacted the token price action, which in technical terms can be referred to as an “exit pump.” At press time, the $LSK was trading at $0.9428 after a hike of 344.5% in the past 24 hours.

So given the current scenario, the token is expected to rise sharply despite deteriorating or disappearing long-term fundamentals. Here, the idea is that traders get a chance to buy the token and earn profits.

However, this won’t last long, as the RSI lying in the overbought zone and the candles crossing the upper band of the Bollinger Bands suggest that there is incoming major selling pressure from the bears.

As Pricesync’s founder put it best when he said,

Here it’s doing clear exit pump cause MM got the point after all of this there will be no future demand in $LSK

Lisk Chain is not alone

Well, Lisk Chain is not the first one to shut down. As in the past two months, BitMEX, the crypto exchange co-founded by Arthur Hayes in 2014, announced plans to shut down after 11 years. At the same time, BitMart has also announced its closure.

Then DeFi aggregator Odos has also been permanently shut down on 30th July. And, at last, ABFinance, a U.S.-compliant crypto platform founded by former Bybit co-CEO Helen Liu, has suspended operations and canceled its planned launch just months after being announced in March 2026.

All these suggest that the crypto market is going through a lot of strain, and regulatory delays are further putting a lot of pressure on the market.

Final Summary

• Lisk’s DAO governance-related programs running on the chain and staking will all be shut down.
• Lisk Chain has joined other firms that decided to wind down their operations in H2 2026.

Source: cryptonews.net