According to CoinMeta, web3, co-founder of XMTP, announced that XMTP Labs will shut down its shared communication network at the beginning of 2027 and transition to an open-source, self-hosted messaging infrastructure that does not require tokens or encrypted wallets. This shift will focus on supporting encrypted communications between humans and AI agent. Shane Mac admitted that web3's social and communication platform did not meet expectations, and the team relied heavily on partners to promote network adoption for a long time, but a sustainable demand was never established. He also confirmed that XMTP never issued any tokens and will not do so in the future, as no reasonable model has been found to support the value of tokens with actual usage needs. XMTP received a $20 million Series A financing led by a16z and crypto in 2021, and completed a $20 million Series B financing in 2025, with a company valuation of $300 million at that time.