Linear Finance, a cross-chain synthetic asset protocol, has officially announced its shutdown, marking the end of its multi-year journey. The project cited financial difficulties and Binance’s recent decision to delist its LINA token as the final straw that made operations unsustainable.
What Led to Linear Finance’s Collapse?
Despite gaining early traction after its launch in 2019-2020, Linear Finance struggled to generate stable revenue. The team relied on personal contributions and token liquidations to keep the project afloat, but this model proved unsustainable in the long run.
The situation took a sharp turn for the worse when Binance delisted LINA, causing the token’s value to crash by 65%. This massive drop wiped out much of the project’s market capitalization, making it impossible to continue operations.
What’s Next for Users?
Linear Finance has assured its users that it will provide detailed instructions on how to close their positions and liquidate assets. The team will outline the timeline for this process to ensure a smooth exit for its remaining community members.
A Farewell Message from the Team
In its final statement, Linear Finance expressed gratitude to its supporters, acknowledging the community’s belief in its vision. While the project is shutting down, its legacy serves as a cautionary tale for DeFi startups—highlighting the importance of financial sustainability and the risks of relying too heavily on centralized exchanges.
As the DeFi space continues to evolve, Linear Finance’s closure is a reminder that long-term success requires more than just innovation—it demands a solid, self-sustaining business model.
