[Exclusive] SK-funded blockchain company a41 shuts down after three years.

A41, a leading domestic validator company, has entered the process of closing its business just three years after receiving a large investment. Intensifying competition in the validator market and a missed opportunity to enter the institutional market are cited as critical factors.

According to industry sources on the 11th, a41 recently notified its employees of its plans for a gradual downsizing and closure. The sudden news reportedly created internal turmoil. The company plans to proceed with liquidation procedures as scheduled.



A41 attracted attention by raising a total of 15 billion won in seed funding in 2022. Notably, SK Corporation invested 5.078 billion won, securing an 8.33% stake. Leading domestic venture capital firms, including DSC Investment, Schmidt, KB Investment, Spring Camp, Intervest, and Base Investment, also participated.

a41, along with DSRV, has been recognized as a leading company in the domestic validator market. Validators are core infrastructure businesses responsible for verifying transactions and generating blocks on blockchain networks. They form the foundation of Proof-of-Stake (PoS) blockchains. According to the company's website, the amount of assets staked through a41 amounts to approximately $2.5 billion (approximately KRW 3.6597 trillion). It operates nodes on more than 17 blockchain networks, and its effective uptime rate, which measures the percentage of nodes operating normally, reaches 99.9%.

However, with competition intensifying across the validator industry and profitability declining, it appears that sustaining the business proved challenging. An industry insider stated, "It appears they judged the future of the validator industry to be bleak, as entry barriers to entry are gradually lowering and competition intensifies."

A41 reportedly considered shifting its business direction to enter the institutional market, but failed to achieve concrete implementation. Industry insiders believe that A41 failed to proactively respond to the changes as the government accelerated its institutionalization of the blockchain industry.

Some analysts say this case demonstrates that the blockchain infrastructure industry has entered a phase requiring collaboration with institutions within the regulatory framework. A41, while possessing superior technological capabilities, was assessed as lacking a strategic shift aligned with institutional trends.

Meanwhile, DSRV, which has grown with a similar business model, is accelerating its entry into the Korean regulatory system by obtaining a Virtual Asset Service Provider (VASP) license in Korea. This has been highly praised, and the company recently attracted approximately 30 billion won in investment. Its corporate value is reportedly over 200 billion won.

Reporter Do Ye-ri