Linea tokens’ prices crashed just after the token launched on exchanges, due to heavy selling pressure.
In the backdrop of the Altcoin Season Index, shifting towards the altcoin season, LINEA’s prices crashed. The community started selling the tokens they received via airdrops after the token was launched on exchanges. LINEA’s price crashed by more than 25% after the Ethereum layer-2 protocol opened claims for its assets through a token generation event (TGE) on Wednesday.
According to Binance’s realistic launch prices, which take into account all factors, including community sentiment, whale valuation, the token was expected to be priced at $0.05 – $0.15 based on a conservative and market-driven approach. Driven by hype and bullish sentiment, LINEA was expected to be between $0.15 – $0.50. However, just after launch, the token crashed and fell well below $0.023.
Why do they sell once listed on the exchange?
Early investors, testnet users, or airdrop recipients often get tokens for free. Listing brings hype and high demand, and these holders see this as a perfect opportunity to sell and make profits. Everyone knows the others would be selling soon, so it creates a sell-before-others effect, which leads to price dumping.
Why do projects do airdrops before going public?
According to Linea, the airdrop forms part of its broader incentive program to reward early users, contributors, and ecosystem partners.
Any eligible recipients will have until Dec. 9 to claim their tokens. If any tokens were unclaimed, they would be returned to the Linea Consortium Ecosystem Fund, where they will be used to support further growth of the Linea and Ethereum ecosystems.
An elated community member who did all the activities to be eligible for the airdrop appreciated the 4200 LINEA received by the airdrop.
