Terminal Finance Shuts Down After Converge Blockchain Fails to Launch - A Cautionary Tale for Crypto Builders
Another crypto project bites the dust—Terminal Finance is shutting down after its foundational blockchain, Converge, never materialized.
The Unlaunched Foundation
Converge was supposed to be the bedrock. The independent layer-1 blockchain that would power Terminal Finance's entire suite of DeFi tools. Without it, the house of cards collapsed. The team announced the wind-down, citing the failed launch as the core reason. No chain, no product. It's that simple.
A Market Reality Check
This isn't just a tech failure; it's a stark reminder of execution risk. The crypto space is littered with ambitious whitepapers and grand roadmaps. Terminal Finance had the blueprint but couldn't pour the concrete. It highlights the brutal gap between vision and viable, functioning infrastructure—where most projects, and investor capital, quietly disappear.
Building on Sand
The shutdown exposes a critical vulnerability for application-layer projects: absolute dependency on their underlying infrastructure. When that foundation cracks, everything built on top falls with it. Teams bet big on in-house chains for sovereignty and tokenomics, but the technical and market hurdles are immense. Sometimes, it's better to build on Ethereum's bedrock than your own quicksand.
One less 'finance' in the space—the market's self-cleaning mechanism works, even if it's ruthless. For every successful launch, a dozen quietly fold, proving that in crypto, the most common exit strategy isn't a token unlock—it's turning off the lights.
Core Chain Failure Forces a Difficult Decision
Terminal had planned to launch as a spot-enabled DEX built entirely on Converge, which was envisioned as a next-generation crypto infrastructure layer combining ethereum compatibility with improved scalability.
However, the chain’s mainnet did not launch on time, and its future timeline has become uncertain. The project, which had generated strong pre-launch attention, ultimately faced a dead end.
Before the shutdown announcement, Terminal had already attractedin total value locked (TVL), according to DefiLlama data. Assets deposited into its vaults included:
- USD 225 million in USDe
- 10,000 ETH
- 100 BTC
More thanhad participated in the ecosystem.
Terminal originally planned aofficial launch and token generation event (TGE), with early user rewards scheduled for distribution.
Technical Limitations and User Fund Protections
The development team explored migrating to other blockchains but faced fundamental compatibility limits. Terminal’s architecture was deeply optimized for the Converge environment and closely tied to Ethena’s product suite, especiallyand the yield-bearing token.
In its official statement, Terminal said that launching on an unsuitable or incomplete foundation WOULD violate its core principles:
Instead of forcing a premature rollout, the team chose to prioritize transparency and user trust. To protect users:
- All deposited principal is now withdrawable 1:1.
- Existing position holders will still receive previously promised Ethena Sats, sUSDe yields, and other rewards.
- The entire protocol codebase will be open-sourced for transparency.
Community reactions have been mixed. Some praised Terminal’s integrity and user-first approach, while others criticized the failure of Converge’s launch and questionedin the breakdown.
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