Swellchain (SWELL) confirmed through its official X account that it will permanently shut down its native network on June 15th. The decision follows an earlier announcement in April in which the project revealed plans to discontinue its proprietary blockchain infrastructure in order to focus resources on Faro, an artificial intelligence platform built on the Hyperliquid (HYPE) ecosystem.
background and timeline
The closure marks a strategic turning point for Swellchain, which was initially launched as a layer 2 solution aimed at improving scalability and liquidity in decentralized finance. According to the project’s April announcement, the native network will cease operations on June 15, but Swellchain will continue to operate on the Ethereum (ETH) network. The SWELL token is expected to remain active through another program, although specific details regarding that program have not yet been fully disclosed.
Focus on Faro and Hyperliquid
The main reason for the network closure is to redirect development work to Faro, an AI intelligence platform built on Hyperliquid. Hyperliquid is a high-performance blockchain designed for decentralized trading and financial applications. By moving to Hyperliquid, Swellchain aims to leverage its infrastructure for AI-driven solutions rather than maintaining its own independent chain. This change reflects a broader trend in the cryptocurrency space, where projects are consolidating resources into established platforms to reduce operational complexity and improve scalability.
Impact on SWELL token holders
For holders of SWELL tokens, this transition means that while the native network will be retired, the token itself will not disappear. Swellchain states that SWELL will continue to function on Ethereum through a separate program, which is expected to provide continued utility. However, the project has not yet announced a detailed migration plan or timeline for token holders. Users are advised to monitor the official Swellchain channel for further updates to avoid any disruption to access or functionality.
Broader industry context
Swellchain’s decision to shut down its native network is part of a larger pattern in the blockchain industry, with projects increasingly moving away from maintaining independent chains in favor of building on existing, more mature platforms. This trend is driven by the high costs and technical challenges associated with operating standalone networks, as well as the desire to leverage established user bases and liquidity pools. By focusing on Faro and Hyperliquid, Swellchain is betting on the growth of the intersection of AI and blockchain technology, an area that will receive significant investment and attention in 2025.
conclusion
The shutdown of Swellchain’s native network on June 15 represents a significant strategic change for the project. While the move may cause some short-term anxiety for some users, the long-term focus on AI through Faro and Hyperliquid could position the project for growth in new niches. Token holders should stay informed through official communications to ensure a smooth transition.
FAQ
Q1: What happens to SWELL tokens after the network shuts down?
A1: SWELL tokens will continue to exist on the Ethereum network through a separate program. The project has not yet provided full details on how token holders will be able to access or use their tokens after the shutdown. You should monitor the official channels for updates.
Q2: Will Swellchain completely disappear after June 15th?
A2: No. Although the native Swellchain network will be shut down, the project will continue to run on Ethereum and focus on developing Faro, an AI platform built on Hyperliquid. The Swellchain brand and SWELL token remain active.
Q3: Why does Swellchain shut down the native network?
A3: Swellchain will deactivate its own network to focus resources on Faro, an AI intelligence platform on Hyperliquid. This decision was driven by the high cost of maintaining a standalone chain and the desire to leverage Hyperliquid’s established infrastructure for AI applications.
