The cryptocurrency world is no stranger to volatility, but the recent launch of the LINEA token has been a spectacle of dramatic ups and downs. Despite initial excitement, the token’s price plunged by over 90% after its debut, leaving investors and community members reeling with questions.
What Happened During the LINEA Token Launch?
The LINEA token, associated with ConsenSys’ zkEVM Layer 2 network, went live on September 9, 2025. Its launch, touted as one of Ethereum’s largest community airdrops in years, created a mix of anticipation and chaos. Shortly after its release, the price soared from $0.030 to $0.046, backed by listings on major exchanges like Binance, Bybit, and OKX. However, these gains rapidly evaporated, with the price dropping below $0.023 within hours.
Chaotic Airdrop Process Sparks Backlash
Linea’s airdrop strategy aimed to empower the community by excluding venture capital firms and centralized entities. Unfortunately, the process was fraught with issues, including network congestion and delays in the token claim process. Notably, Binance users were able to claim their tokens instantly, while others faced delays due to a late funding contract. This sparked accusations of favoritism towards centralized entities in what was supposed to be a decentralized distribution.
A blockchain analyst report confirmed that the community claim contract was delayed by approximately 50 minutes, handing an unfair advantage to centralized exchange users. Community frustration spilled over to social platforms, labeling the rollout as botched and unbalanced.
Price Collapse and Concerns Over Tokenomics
Linea launched with a circulating supply of more than 21% of its total issuance, an unusually high figure for a newly released cryptocurrency. This led to fears of inflation and short-term dumping by initial holders who sought to capitalize on the hype. Despite initial excitement, the selling pressure drove the token price to plummet further, compounding investor disappointment.
The project introduced deflationary tokenomics with a dual-burn model that uses Layer 2 fees to buy and burn LINEA tokens. However, the lack of a decentralized governance structure has added questions about long-term control and transparency.
Does Linea Have a Future?
Interestingly, despite the chaos surrounding the token launch, Linea’s ecosystem metrics remain strong. According to DeFiLlama, Linea reached a total value locked (TVL) of $2.984 billion, with Aave alone accounting for over $776 million. Daily active addresses have averaged around 50,000, and decentralized exchange volumes recently hit $215 million in a single day. These robust metrics suggest that the ecosystem underlying LINEA still holds significant potential.
As the market stabilizes, attention has shifted to whether the $0.024 price level can provide support, paving the way for a potential rebound. Analysts speculate that the initial selloff may have flushed out holders looking for short-term profits, potentially leading to a more stable market environment.
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