- Linear Finance gives up business after Binance took the Lina token out of the trade and escalated the cash flow problems.
- The technology worked perfectly, but naGenerating the resulting problem proved to be the decisive problem.
Linear Finance finally decided to operate setafter Binance announced that it would take the Lina token out of the trade. It didn’t take long for the news to send the market value of Lina on a downward slide: it fell around 65 percent.
The core team and other participants then made the decision behind the project: liquidation and exit from all positions.
Notice of Closure
After careful consideration, Linear Finance has made the difficult decision to cease operations.
Despite our ongoing efforts to innovate and build throughout the years, the project has struggled to generate sustainable returns. Outside of a brief period of…
— Linear Finance (@LinearFinance) March 27, 2025
The decision was announced publicly and left many customers who still had active positions. Are the funds refunded? How can you get out? The linear team announced that they would soon turn to customers to clarify the exit process.
Liquidity crisis as the cause
As for technology, linear finance has no problem. The application runs, the functions are largely complete and the community is committed. But this is all about money; And the problem was to generate insufficient cash flow in order to stay afloat in view of the constant pressure of the market and the increasing operating costs.
They managed to survive through personal means of the project owner and revenues from token sales. However, this approach was not permanent enough. As Binance announced that it would take Lina out of trade, it was over as if someone had overturned a switch. Without liquidity and without ways out, only the possibility was to give up.
The cleaning of Binance meets several tokens
It turns out that the decision regarding Lina was not an individual. Binance actually carries out a large cleaning campaign. After a regular check, the platform decided to take out spot pairs from several tokens and stop trading with them: Aergo (Aergo), Airswap (AST), Burgercities (Burger), Combo (Combo), and also linear finance (Lina). The end comes on March 28th.
Binance will take other token pairs out of the trade at the appointment, such as Gala/BNB and Perp/BTC, and a little later, on March 31, also USDT/CZK and USDT/RON.
It seems to be part of the efforts to “improve the quality of the market”, as it was said.
The community votes – but the decisions come from above
Interestingly, Binance had introduced a new function called “Vote to Delist” before this storm, essentially, the community can have a say in voting on the fate of the tokens. The idea sounds democratic on paper, but unfortunately its actual effect has not made itself very noticeable.
In the case of linear finance, the decision seems to have been made without a vote given.
Web3 dreams fade without a business model
Linear is not the only project that has to be stopped in the near future. CNF reported Recently that Harpie, a security service for digital assets supported by Coinbase, has also decided to hire all of his services. Here, too, the problem is not in the product, but in the difficulty of creating a stable and constant source of income.
It is becoming increasingly obvious that many web3 projects that were once advertised as the future of financial system have problems now because they lack a stable business model. It is not enough to have a top technology if nobody is willing to pay for your use.
No Comments