Despite initial profitability, Linear Finance project failed to generate sustainable returns which was worsened by Binance delisting.
Linear Finance, a company that specializes in DeFi protocol, encountered a significant setback on Thursday when it disclosed its intention to cease operations. The entity issued a “Notice of Closure” in an official X post on March 27.
Linear Finance Issues ‘Notice Of Closure”
During the project’s turbulent period, the protocol’s native token, LINA, also saw a significant decline, leading to a weekly loss of nearly 70%.
In its most recent X post, Linear Finance disclosed that the company’s financial difficulties were the main factor in the difficult decision to cease operations.
The DeFi protocol has failed to produce sustainable returns, despite repeated endeavors to promote innovation and development. The entity responded by issuing a “Notice of Closure,” which caused a stir in the broader market.
The announcement disclosed that the project has encountered significant financial obstacles, with the exception of a limited period of profitability during its initial launch in 2019/20.
The project was initially funded through a combination of personal contributions by the project proprietor and token liquidations.
Nevertheless, Linear Finance declared that this model is no longer viable. Subsequently, the organization disclosed its intention to terminate the operation.
In the interim, it is also important to acknowledge the recent setback that Binance has experienced. The cryptocurrency exchange behemoth previously announced plans to delist the LINA token, which has since compounded its difficulties.
The delisting saga on one of the major crypto exchanges led to a 65% drop in the coin’s market cap, according to the DeFi entity. A ‘Notice of Closure’ was issued in consideration of the aforementioned setbacks.
LINA Price Crashes
A collective decision was also made by the project’s main stakeholders to cease operations. At the time of publication, the price of LINA had decreased by 6% and was trading at $0.0006215.
The coin’s intraday low and high were $0.0006091 and $0.0009516, respectively. The token experienced a 67% and 72% decline on the weekly and monthly charts, respectively.
The primary causes of the adverse price movement are the delisting of Binance and the termination of operations by Linear Finance. At present, crypto market participants are anticipating additional information regarding the matter.
