@Linea.eth with #linea and $LINEA mentioned as Limitations on the Utility and Usability Features of the Token (Currently)
Not for Gas Fees: Currently, LINEA token is not used to pay transaction fees (gas) on the Linea network; gas fees are still paid in ETH. This reduces the basic demand and core utility of the token.
Not for Governance: LINEA Token currently does not have on-chain governance rights. Initial decisions are made by a coalition (Consensys and partners), raising concerns about centralization.
📉 Risks regarding Supply and Selling Pressure
Large total supply: With a total supply of 72 billion tokens, it will take a long time for the burn mechanism and network application to balance the supply.
Selling pressure from Airdrop/Unlock: After the launch and airdrop implementation, there was strong selling pressure (price dropped nearly 30-50% after TGE) due to early recipients and speculation selling to take profits immediately.
Heavy speculation: The initial token price tends to fluctuate significantly based on news and hype rather than fundamental factors, creating high risks for short-term investors.
🛡️ Concerns about Centralization (Decentralization)
Centralized control: Although Linea is committed to decentralization, Layer-2 projects in general and Linea in particular (developed by Consensys) initially have centralized elements (e.g., Sequencer coordinating transactions).
Network suspension incident: Linea's previous suspension of the blockchain (even if only for a short time to block hackers) has raised doubts about the project's centralized control and commitment to decentralization.
Competitive L2 environment: Linea is not the only zkEVM Layer 2. It has to compete fiercely with other strong rivals like zkSync, Arbitrum, Optimism, and Scroll to attract users, developers, and total value locked (TVL).
In summary:
The biggest current weakness of the LINEA token is its limited core utility (not used for gas and governance) and high price volatility risks due to selling pressure from a large supply and airdrop in an L2 market.
