Joseph Lubin, founder of Consensys, has hinted that LINEA currently has little use other than as a passport for future airdrops. Let’s take a closer look at his statement.
LINEA has little use
On Wednesday, the LINEA token from Ethereum’s eponymous layer 2 entered the market, and for the moment, it’s clear that enthusiasm is lacking. While it is still too early to draw any real conclusions, data from CoinGecko shows that the asset has already fallen 57% after peaking at $0.055 at the time of the token generation event (TGE).
At the time of writing, LINEA is trading at less than $0.024:
In this context, Joseph Lubin, founder and president of Consensys, responded to criticism from an investor concerned about the token’s actual usefulness.
However, his response seems somewhat vague and may not be enough to reassure the community. Indeed, the entrepreneur simply explains that holding LINEA will lead to “other reward opportunities” through other tokens in the Consensys and partner ecosystem, while MetaMask and Linea are “working together to make this happen”:
Together, we are contributing to the development of the LINEA token economy. Holding LINEA tokens indicates that you are a member of the Linea community and are likely participating in productive activities in the Linea economy: creation, liquidity provision/staking, usage, collection, etc. So, if we see at some point that you have held [X] LINEA tokens for [Y] days, this could result in another token being distributed to your account. And if [X] and [Y] are larger numbers, your address could receive a larger reward.
In this context, Joseph Lubin, the founder and president of Consensys, responded to criticism from an investor who is concerned about the actual usefulness of the token.
However, this response seems a little vague and may not be enough to reassure the community. Indeed, the entrepreneur simply explains that holding LINEA will lead to “other reward opportunities” through other tokens in the Consensys and partner ecosystem, while MetaMask and Linea are “working together to make this happen”:
Together, we are contributing to the development of the LINEA token economy. Holding LINEA tokens indicates that you are a member of the Linea community and are likely participating in productive activities in the Linea economy: creation, liquidity provision/staking, usage, collection, etc. So, if we see at some point that you have held [X] LINEA tokens for [Y] days, this could result in another token being distributed to your account. And if [X] and [Y] are larger numbers, your address could receive a larger reward.
While Linea layer 2 is currently ranked as Ethereum’s third layer 2 in terms of total value locked (TVL) in its decentralized finance (DeFi) applications, with $2.57 billion, its token will have to prove itself.
It would not be the first layer 2 token to fail, following in the footsteps of ARB, ZK, and STRK, which are trading down 78.1%, 80.7%, and 96.9% from their all-time highs (ATH), respectively.
