Blockchain Firm Skynet Labs Shutters After Failing to Get New Funding

Skynet Labs was formed to promote decentralized internet platform Skynet.

AccessTimeIconAug 12, 2022 at 9:43 p.m. UTC
Updated May 11, 2023 at 4:22 p.m. UTC

Skynet Labs, which is behind decentralized platform Skynet, is shutting down after the company couldn’t raise more funds. It will also be cutting jobs, according to a blog post Friday.

CORRECTION (Aug. 13, 22:52 UTC): Clarifies Skynet's relationship to Siacoin, which was taken over by a completely separate non-profit organization, the Sia Foundation, in 2021.

  • U.S. Lawmakers Visit Detained Binance Exec in Nigeria; Winklevoss Twins Donate to Trump Campaign
    U.S. Lawmakers Visit Detained Binance Exec in Nigeria; Winklevoss Twins Donate to Trump Campaign
  • Meme Coin Liquidity Hits Record High
    Meme Coin Liquidity Hits Record High
  • How Ledger Stax Plans to Make Self-Custody More Mainstream
    How Ledger Stax Plans to Make Self-Custody More Mainstream
  • Why Dogecoin Is a 'Weird' Investment
    Why Dogecoin Is a 'Weird' Investment
  • In 2020, the startup formerly known as Nebulous, raised $3 million in a funding round led by crypto investing giant Paradigm. Skynet Labs was formed as the company sought to focus on Skynet, a decentralized storage and app hosting platform to buildout a decentralized internet.

    “It is with regret that we announce Skynet Labs has been unable to complete its next round of fundraising and will be shutting down,” CEO David Vorick wrote in the blog post. Skynet, however, will continue to operate as a platform, he said, adding that user files will stay online, and key portions of the infrastructure will continue to be actively developed.

    "Not the outcome we wanted, but not the end of the road for Skynet either," Vorick also said in a Tweet on Friday.

    Skynet Labs has cut headcount by half and will decrease the number of employees even more over the next month. “Much of what Skynet has accomplished, including its ability to continue operating in the face of Skynet Lab’s dissolution, and including its ability to provide value to the wider Web3 ecosystem, is owed to the efforts and contributions of the Skynet Labs team members,” Vorick added.

    On July 26, Vorick laid out road map for Skynet in a blog post and said the team has been focusing on decentralization and Web3 user experience similar to Web2. "Achieving both of those things at the same time has required a substantial amount of innovation, but we are fortunate enough to have a team that is more than capable of consistently churning out new updates that push the boundaries of our industry," he said.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Author placeholder image

    Michael Bellusci is CoinDesk's crypto reporter focused on public companies and digital asset firms.