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The Coin Rise 2025-03-27 17:18:55

Linear Finance Shuts Down DeFi Protocol, Here’s Why

Linear Finance, a decentralized finance (DeFi) protocol, has shut down because of ongoing financial problems. This decision followed Binance’s delisting of Linear’s native token, LINA, causing a sharp decline in its market value. According to the protocol , the unexpected delisting worsened its existing issues, making it impossible to keep operating. Binance Delisting Sparks Linear Finance Token Price Crash Recall that Binance, one of the largest cryptocurrency exchanges in the world, recently removed trading pairs for LINA. This decision caused a significant sell-off. Meanwhile, Linear Finance affirmed it did not receive a prior warning before Binance’s decision, leaving the protocol unprepared for the market reaction. Following LINA’s delisting announcement, its market value dropped from around $14 million to under $5 million. Unfortunately, the drop weakened the protocol’s financial stability. At the time of writing, LINA’s price has fallen about 28% in less than 24 hours. Linear Finance makes it easy to trade synthetic assets across different blockchains. However, since it launched, the platform has had difficulty attracting users and generating steady returns. Although the team has not provided a clear timeline for shutting down operations, users and investors are advised to withdraw any remaining funds from the platform. DeFi Sees Rising Institutional Interest Institutional investors are increasingly doubling their crypto ambitions , with 83% planning to boost their digital asset holdings in 2025. According to a report by Coinbase and consultancy firm EY-Parthenon, nearly three-quarters of the surveyed firms already hold cryptocurrencies beyond the usual Bitcoin and Ethereum staples. In parallel, decentralized finance platforms are also gaining traction. Although only 24% of institutions currently use DeFi, the reports predict this figure will triple to nearly 75% within the next two years. Institutions cited staking, derivatives, and lending as their primary use cases, followed by cross-border settlements, yield farming, and altcoin access. CFTC Crackdown on 3 DeFi Protocol Operations Meanwhile, the US Commodity Futures Trading Commission (CFTC) has cracked down on three DeFi protocols for neglecting to register the derivative trading they offer. As reported by TheCoinRise, the US commodities body placed orders on Opyn, ZeroEx, and Deridex protocols. The three companies were accused of providing unauthorized leveraged and margined retail commodities transactions in digital assets. According to the CFTC’s orders, Opyn, ZeroEx, and Deridex were asked to pay fines of $250,000, $200,000, and $100,000, respectively. The post Linear Finance Shuts Down DeFi Protocol, Here’s Why appeared first on TheCoinrise.com .

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