Linear Finance to cease operations amid financial crisis
Date: 2025-03-28 Author: Henry Casey Categories: BUSINESS
Decentralized finance project Linear Finance has officially announced the termination of its operations due to serious financial difficulties. The team is already preparing instructions for users on how to close all active positions in applications running on their protocol.
Linear Finance representatives emphasized in a statement that the project was unable to provide stable profits. Despite a short-term successful period in 2019–2020, the financial situation has only worsened since then. According to the team, they continued to support the project through personal investments and token sales, but these resources were not enough.
The delisting of the LINA token from the Binance platform dealt a special blow to the project. After the token was delisted, its market capitalization fell sharply — by 65%, which further complicated the financial situation of Linear Finance. This move by the largest cryptocurrency exchange has seriously undermined the confidence of investors and users, and has also limited the liquidity of the token.
The project team admitted that despite all efforts to stabilize, it has become impossible to continue working. In the near future, they promise to provide all the necessary steps for users to safely liquidate their assets within the ecosystem.
A similar situation is observed in another crypto project - Vite Labs. They also faced serious financial restrictions after the VITE token was delisted on Binance. In addition, the partnership with the market maker DWF, according to the developers, led to significant losses. These factors aggravated the already precarious position of the project.
The stories of Linear Finance and Vite Labs highlight the vulnerability of DeFi projects to external market conditions, especially in the event of a loss of support from large platforms. Difficulties with liquidity, decreased trust, and the unstable economics of the crypto market make the survival of such initiatives an increasingly difficult task.
