Sophon Closes Layer 2 Blockchain, Shifts to Base for Consumer Apps

According to The Block, Sophon, which raised $70 million, is closing its Layer 2 blockchain and shifting to Base to build consumer applications on June 26, citing the end of crypto's infrastructure era. Co-founder Sebastien said the shutdown will save approximately $3 million annually in operational costs. The SOPH token will shift from a blockchain gas token to a value accumulation tool backed by product revenue, with the team repurchasing and burning SOPH from market proceeds.

Sophon plans to launch five consumer apps on Base, including Pyre, a gamified DeFi app launching next month, and SophEarn, with SophPlay and XP.app expected in Q3 and Q3/Q4 respectively. SophAI is in development and will enter alpha testing later this year.