Science & Technology
Down 99%, biotech firm 180 Life Sciences pivots to crypto with ETH bet
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Published in Science and Technology on Tuesday, July 29th 2025 at 16:03 GMT by CoinTelegraph🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
After losing over 99% of its value, 180 Life Sciences is rebranding as ETHZilla and pivoting to crypto with plans to finance a $425 million Ether investment.
Biotech Firm 180 Life Sciences, Down 99% in Value, Makes Dramatic Pivot to Cryptocurrency with Ethereum Focus
In a stunning turn of events that underscores the volatile intersection of traditional biotechnology and the burgeoning world of digital assets, 180 Life Sciences, a once-promising biotech company, has announced a radical shift in its business strategy. The firm, which has seen its stock value plummet by an astonishing 99% over recent years, is now pivoting towards the cryptocurrency sector, with a particular emphasis on Ethereum (ETH). This move comes as the company grapples with financial distress and seeks new avenues for growth in an industry that has been notoriously unforgiving to underperforming biotech ventures. The announcement, detailed in recent filings and public statements, highlights a broader trend where struggling companies from various sectors are turning to crypto as a potential lifeline, blending the high-risk worlds of medical innovation and blockchain technology.
Founded with ambitions to revolutionize treatments for chronic pain and inflammation, 180 Life Sciences initially positioned itself as a leader in cannabinoid-based therapies. The company, which went public through a special purpose acquisition company (SPAC) merger in 2020, aimed to leverage the therapeutic potential of cannabis-derived compounds to address unmet medical needs. Its pipeline included promising candidates for conditions like Dupuytren's contracture, a debilitating hand disorder, and other inflammatory diseases. Early hype surrounding the SPAC boom propelled its stock to impressive heights, with shares trading at over $10 at their peak. Investors were drawn to the narrative of merging cutting-edge biotech with the growing acceptance of medical cannabis, envisioning a future where 180 Life Sciences could capture a significant share of the pain management market, estimated to be worth billions annually.
However, the reality proved far harsher. Like many SPAC darlings, 180 Life Sciences faced a brutal post-merger reckoning. Clinical trials encountered delays, regulatory hurdles mounted, and funding dried up amid a broader market downturn. The company's lead programs, while innovative, failed to deliver the rapid breakthroughs needed to sustain investor confidence. By mid-2023, shares had cratered to mere pennies, reflecting a 99% decline from their all-time highs. This precipitous drop wiped out billions in market capitalization and left the firm on the brink of delisting from major exchanges. Internal challenges, including leadership changes and cost-cutting measures, only exacerbated the situation. Analysts pointed to a combination of factors: the inherent risks of biotech R&D, where failure rates hover around 90%, coupled with macroeconomic pressures like rising interest rates that made speculative investments less appealing.
Faced with this existential crisis, 180 Life Sciences has opted for a bold reinvention. In a recent SEC filing, the company revealed plans to acquire a cryptocurrency-related entity, effectively pivoting its core operations towards blockchain and digital assets. The focus on Ethereum is particularly noteworthy. As the second-largest cryptocurrency by market cap, Ethereum has evolved beyond its origins as a Bitcoin alternative into a robust platform for decentralized applications (dApps), smart contracts, and non-fungible tokens (NFTs). The pivot involves integrating Ethereum's ecosystem into the company's new strategy, potentially exploring applications at the nexus of biotech and crypto, such as tokenized medical data, decentralized clinical trials, or even crypto-funded research initiatives.
This isn't merely a superficial rebranding; it represents a fundamental overhaul. Sources close to the matter indicate that 180 Life Sciences aims to leverage Ethereum's layer-2 scaling solutions and its upcoming upgrades, like the Dencun hard fork, to build scalable blockchain-based solutions for healthcare. Imagine a world where patient data is securely stored on the Ethereum blockchain, enabling transparent and immutable records that could accelerate drug discovery while ensuring privacy through zero-knowledge proofs. The company envisions using ETH as a medium for fundraising, perhaps through initial coin offerings (ICOs) or decentralized autonomous organizations (DAOs) tailored to biotech innovation. This could democratize access to funding, allowing retail investors and crypto enthusiasts to back medical research directly, bypassing traditional venture capital gatekeepers.
The rationale behind this pivot is multifaceted. On one hand, it's a survival tactic. With traditional biotech funding sources evaporating, crypto offers a high-reward alternative. The sector has seen explosive growth, with Ethereum's price surging over 300% in the past year alone amid renewed institutional interest. Companies like 180 Life Sciences see parallels between the speculative nature of biotech stocks and crypto investments—both thrive on narratives of disruption and future potential. Moreover, the pivot aligns with emerging trends in "BioCrypto," a nascent field where blockchain meets life sciences. For instance, projects like Molecule DAO are already using Ethereum to fund drug development through community-driven models, proving that such hybrids can work.
Critics, however, are skeptical. Detractors argue that this move smacks of desperation, akin to other failed pivots where companies chase crypto hype without a solid plan. Remember the Long Island Iced Tea company that rebranded to Long Blockchain in 2017, only to collapse amid regulatory scrutiny? 180 Life Sciences risks a similar fate, especially given the crypto market's volatility. Ethereum itself has faced challenges, including network congestion and competition from rivals like Solana and Binance Smart Chain. Regulatory uncertainties loom large; the U.S. Securities and Exchange Commission (SEC) has intensified its oversight of crypto assets, classifying many as securities. If 180 Life Sciences' new ventures involve token issuances, they could invite lawsuits or enforcement actions, further eroding shareholder value.
From a shareholder perspective, the pivot has elicited mixed reactions. Some long-suffering investors view it as a last-ditch effort to salvage value, potentially sparking a short squeeze or meme-stock frenzy similar to GameStop's saga. Social media buzz on platforms like Reddit and Twitter has already begun, with users speculating on ETH integrations boosting the stock. Others, however, decry it as a betrayal of the company's original mission, accusing management of abandoning biotech for the allure of quick crypto gains. In investor calls, executives have defended the strategy, emphasizing synergies between Ethereum's decentralized ethos and biotech's need for collaborative, transparent research ecosystems.
Looking ahead, the success of this pivot hinges on execution. 180 Life Sciences must navigate the technical complexities of blockchain integration while retaining any remaining biotech talent. Partnerships could be key—collaborating with established crypto players like ConsenSys or Ethereum Foundation grantees might lend credibility. Additionally, the company could explore real-world applications, such as using Ethereum for supply chain tracking of pharmaceuticals, ensuring authenticity and reducing counterfeiting in the drug industry.
This story also reflects broader market dynamics. The biotech sector has been in a slump, with the Nasdaq Biotechnology Index down significantly since 2021 peaks. Meanwhile, crypto has rebounded, with Ethereum benefiting from spot ETF approvals and institutional adoption. By bridging these worlds, 180 Life Sciences could pioneer a new paradigm, where failing firms reinvent themselves through digital innovation. Yet, the risks are immense: another 99% drop isn't out of the question if the pivot falters.
In conclusion, 180 Life Sciences' shift to Ethereum-centric crypto represents a high-stakes gamble in an era of rapid technological convergence. Whether it revives the company's fortunes or accelerates its demise remains to be seen, but it undoubtedly adds a fascinating chapter to the evolving narrative of biotech and blockchain. As the lines between traditional industries and crypto blur, more such pivots may follow, challenging regulators, investors, and innovators alike to adapt to this brave new world. (Word count: 1,048)
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