Bitlayer, a Bitcoin Layer 2 solution, has seen its native BTR token collapse by 85% with no public explanation from the project team, raising serious concerns among investors who poured roughly $30 million into the venture across multiple funding rounds.
The project attracted backing from prominent venture firms including Framework Ventures, ABCDE Capital, StarkWare, OKX Ventures, and Franklin Templeton across a seed round worth $5 million, a Series A valued at $11 million, and an extended Series A of $9 million. Additionally, Polychain Capital and Selini Capital participated in later funding stages, followed by a public token sale in August 2025 that raised approximately $5 million through platforms including CoinList, Echo, Holdstation, and GoMining, drawing thousands of retail and institutional investors.
The sharp decline without any official statement from Bitlayer's leadership has left stakeholders without clarity on the cause of the collapse or any remedial actions. The silence represents a notable departure from standard communication practices during significant token devaluations and has intensified scrutiny on how well-funded Bitcoin scaling projects manage investor relations during critical moments.