Loopring’s Wallet Shutdown Shocker: What’s Next for Ethereum’s Layer-2 Star?
Loopring, an Ethereum Layer-2 protocol, will halt its wallet operations by June 30, 2025, after a $5M hack in 2024. Users must transfer assets or risk losing access. Is this the end or a new beginning for Loopring’s DeFi vision?
Loopring, a leading Ethereum Layer-2 and Layer-3 zero-knowledge rollup protocol, announced on May 28, 2025, that its wallet operations will cease by June 30, 2025, per Crypto News. The Loopring Smart Wallet, a mobile app leveraging immutable smart contracts, will be delisted from app stores, ending updates and access. Users are urged to transfer funds and NFTs to other wallets to avoid disruptions, though assets remain secure in smart contracts and accessible manually.
The decision follows a $5 million hack in June 2024, where attackers exploited Loopring’s two-factor authentication, compromising 58 accounts, per Halborn. The incident, coupled with founder Daniel Wang’s shift to Taiko, a competing Layer-2, has raised concerns about Loopring’s focus. Posts on X speculate a potential rebrand, possibly tied to GameStop’s crypto moves, but no evidence confirms this.
For new investors, this highlights the risks of centralized wallet services in DeFi. Loopring’s LRC token, trading at $0.102, may face pressure, with analysts predicting a drop to $0.0988 by June 2025, per Changelly. The protocol itself remains operational, but beginners should diversify and prioritize self-custodial wallets to navigate this transition safely.
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The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
NOTICE:
The information provided on trafy.io does not constitute investment advice or recommendations. All investment and trading activities involve risks, and readers are advised to conduct their own research before making decisions.
