Hack VC-Backed Nillion to Shut Down Its Chain on Cosmos, Shift Focus to Ethereum
The Defiant
by Denis OmelchenkoFebruary 19, 2026
AI-Generated Deep Dive Summary
Nillion's NilChain, a privacy-focused blockchain built using the Cosmos SDK, is halting operations on the Cosmos network and shifting its focus to Ethereum. This decision comes as part of broader changes within the interoperability-focused ecosystem, following Cosmos' announcement that it would no longer prioritize transforming the Cosmos Hub into a smart contract platform. The move has led to declining Total Value Locked (TVL) in the ecosystem.
In an X post on February 17, Nillion's team revealed that NilChain operations will cease on March 23, urging holders of the NIL token to migrate their assets to Ethereum before the shutdown. NilChain was designed as a network for secure computation but struggled to achieve widespread adoption within the Cosmos ecosystem despite its innovative approach.
The shift to Ethereum aligns with Nillion's goal of expanding its reach and accessibility. Ethereum's established smart contract platform and larger developer community position it as a more viable option for growth compared to the challenges faced on Cosmos. This strategic pivot underscores the importance of adaptability in the rapidly evolving blockchain and DeFi space, where market dynamics and ecosystem support play crucial roles in determining success.
For readers interested in crypto, this development highlights the fluid nature of blockchain projects and the need to stay attuned to ecosystem shifts. It also emphasizes the significance of platform choice in fostering innovation and adoption, offering insights into how projects adapt to changing market landscapes for sustained growth and relevance.
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Originally published on The Defiant on 2/19/2026