The newly launched Linea token, an Ethereum Layer-2 project, faces significant challenges after its launch. What was expected to be a strong debut quickly turned turbulent with a 27% loss in value.
Airdrop Issues
The first wave of trouble began during Linea’s anticipated airdrop aimed at rewarding early users. Over 9.36 billion tokens were distributed to nearly 750,000 wallets, but many users faced delays claiming them.
While Binance users received their tokens instantly, many in the community were locked out. Analysts later revealed that the airdrop contract had been funded late, allowing exchange users to sell first. This sparked frustration and set the stage for panic selling.
Whale Reactions
The uneven distribution opened the door for large holders and early buyers to cash out quickly. As soon as the token listed on OKX, early buyers and large holders wasted no time exiting. LINEA briefly touched $0.32 during its first hours of trading, but sell pressure quickly overwhelmed liquidity.
Future of Linea Token
Concerns around supply are adding to the storm. Linea recently announced an expansion of its liquidity rewards program, increasing allocations to 1.6 billion tokens. While this move aims to attract more users, some fear it adds to short-term selling pressure and undermines confidence in the token’s value.
Despite the rocky launch, Joseph Lubin, founder of Consensys, hinted that long-term LINEA holders could receive future rewards. He noted that holding the tokens demonstrates commitment to the Linea community and may qualify users for extra distributions.
The situation surrounding the Linea token underscores the complexities of the cryptocurrency market, where even well-anticipated launches can lead to significant issues beyond user control.
