On September 10, Linea launches its token with a 9.36 billion airdrop, excluding team and venture investors. Despite $1.3 billion TVL, doubts persist: LINEA lacks payment or governance utility, relying instead on buybacks and burns. Competing Layer-2 tokens have struggled, raising questions about the coin’s necessity and long-term value within Ethereum’s ecosystem.
On September 10th, Linea tokens will be generated, giving the Ethereum project, which has been in existence for over two years, its own cryptocurrency. Interest is high, and Linea has its own concept.
Even before its stock market debut, Linea on X is making big promises: With the launch of the LINEA cryptocurrency, the most important token will enter the Ethereum ecosystem since ETH itself. On Wednesday (September 10th), an initial 9.36 billion LINEA will be distributed via airdrop to early users and prominent backers, while the team and venture investors are expected to miss out. The project has been live as Layer 2 of Ethereum since July 2023 and, according to data from DeFiLlama , has reached a TVL of just over $1.3 billion.
LINEA is expected to gain value through buybacks – but there is no use case
Unlike other Ethereum Layer-2 solutions like Arbitrum, Linea is not intended to be used as a means of payment for fees. Linea is also not intended as a self-governing governance token . The altcoin is intended to generate value by using collected Ethereum fees to buy back Linea and then burning it. Linea explains its allocations to Ethereum companies like Sharplink Gaming or Metamasket as “strengthening the ecosystem.”
Altcoins from Ethereum Layer-2 solutions have not prevailed
Whether the Linea concept will work is doubtful. Our analysis of Ethereum Layer 2 solutions from the end of August was not the only one to show that their cryptocurrencies are long past their prime.
According to L2Beat ‘s data , Linea ranks fourth by TVL, but far behind Base and Arbitrum. Coinbase’s Base has decided not to offer its own coin, thus shaking up the competition. Kraken has copied this solution with INK. So, anyone looking for an Ethereum Layer 2 doesn’t even need to buy another cryptocurrency.
Conclusion: Linea starts with question marks about its usefulness
One can’t help but get the impression that the Line project, as Layer 2 on Ethereum, has achieved quite a bit over the past two years. But why it needs a LINEA cryptocurrency now isn’t clear.
Even if the team isn’t directly rewarding itself with LINEA, major partners from EigenLabs to Metamask (ConsenSys) are receiving tokens, and there are no plans for private investors to have a say. If you don’t get your first Linea through the airdrop, we strongly recommend doing your own research.
__
(Featured image by Shubham Dhage via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in BLCOK-BUILDERS.DE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
