Linear Finance, a decentralized finance (DeFi) project, has officially announced that it is shutting down. On March 27, the company issued a “Notice of Closure” as it made the announcement in an X (formerly Twitter) post. This effectively means that the project will not run further, and its services will no longer be active.
The reason for this decision is because of the money problems. When it launched in 2019-2020, Linear Finance was profitable, but has since struggled financially. Much like other projects, the project depended on money from the founders and the money from token sales, but that model is not working anymore. Since this was not happening, the team decided to shut everything down.
The next main problem was when the world’s largest cryptocurrency exchange, Binance chose to remove Linear Finance’s token, LINA, from its platform. The announcement made things worse as LINA lost 65% of its value after the announcement. As the news broke out, investors started rapid selling of their LINA tokens and the price experienced an almost 70% drop within a week.
Currently, LINA is trading at approximately $0.0006215 but much less than before. Now, investors and users are waiting for more updates on what’s next.
The Linear Finance shutdown is another case in a long line of examples of how tough it is to keep DeFi projects going. Often, crypto startups face the problem of financial sustainability and lack of exchange support. This closure reminds investors to be careful when investing in digital assets.
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