Cosmos ecosystem's Leap Wallet is shutting down

Leap Wallet, the noncustodial crypto storage solution originally launched to support the non-defunct Terra-Luna ecosystem, is shutting down.

The project plans to sunset its software suite by May 28, according to an announcement on Friday. The wallet supported over 100 Cosmos chains.

"This decision was not made lightly," the team wrote on X. "We continue to believe in the long-term future of crypto and the interchain ecosystem, and we remain supporters of the builders still in the arena," the team added. 

In particular, Leap is shutting down its browser extension and mobile apps for iOS and Android, the Leap WebApp, Swapfast exchange platform, and Leap Cosmos Hub Validator. 

"If you have ATOM delegated to Leap’s Cosmos Hub validator, please redelegate to another validator to continue earning staking rewards," the team noted. "We encourage doing this as early as possible to account for network unbonding periods."

Roshan Dharia, a seasoned distressed investor and CEO of Echo Base, commented on the news, noting the wallet space is highly competitive.

“This is less about the viability of self-custody and more about unit economics. Non-custodial wallets operate on thin, flow-driven revenue streams, which makes mid-tier players particularly vulnerable as activity and liquidity concentrate," Dharia told The Block. 

Leap Wallet origins

Leap was launched in late 2021 with a $50,000 grant from Terraform Labs, the no-longer-operating R&D firm behind the TerraUSD. It raised a $3.2 million seed round co-led by CoinFund and Pantera Capital in early 2022. 

Similar to MetaMask for Ethereum and Phantom for Solana, Leap originally positioned itself as a kind of go-to wallet for Terra, including providing easy onramps for staking LUNA, trading and Terraswap, and connecting with Terraform Labs’ Anchor and Mirror decentralized applications. 

After the collapse of Terra, which is often cited as the catalyst for the 2022 crypto market crash, Leap expanded and pivoted to provide support for the wider multi-chain Cosmos ecosystem. Terra was built using Cosmos' SDK. 

An FAQ noted that while core components of Leap’s offering will become inactive, noncustodial wallet users will still be able to access their assets using a recovery phrase or private key using another wallet. 

"There is no need to withdraw or send your assets to a new address. Importing your recovery phrase or private key restores the same address, so your assets remain where they are," the team explained. 

Editor's note: Adds comment from analyst.