Massive Token Outflows From Linea Treasury Wallet
New on-chain data reveals something concerning about Linea’s treasury operations. According to analysis by Arkham Intelligence, the project’s 0x7fBE2… wallet holds about 44.6 billion LINEA tokens. That’s roughly a quarter of the total supply.
What’s troubling is that this wallet has moved over 5 billion tokens since the token generation event in September 2025. These transfers went through intermediaries like Gnosis Safe proxies before appearing on exchanges.
I think this creates a real problem for Linea’s credibility. The project previously argued it wouldn’t have third-party investors causing sell pressure. Now critics say they’re creating exactly that pressure themselves.
Price Collapse and Community Backlash
The timing of these outflows seems particularly damaging. Many users held LINEA tokens hoping for potential MetaMask-related airdrops. Instead, they watched the token value plummet.
From an all-time high of $0.05, LINEA has crashed to around $0.0078. That’s an 84% drop. Daily trading volumes have shrunk to between $20 and $40 million, which feels pretty thin for what was supposed to be a major Layer 2 token.
On social media, the frustration is palpable. Users are accusing Linea of undermining its own liquidity. Comparisons are being made to other Layer 2 projects where foundation-controlled wallets sold large amounts during periods of high retail interest.
Broader Layer 2 Token Economics Concerns
This situation isn’t happening in isolation. There’s growing skepticism about Layer 2 token models across the board. Projects like Optimism and Arbitrum have faced similar criticism about foundation unlocks and strategic sales.
Traders are starting to question whether current L2 token structures can maintain healthy markets. The issues seem to center around transparency in distribution and predictability in unlock schedules.
Linea’s case feels particularly disappointing because the project initially promised a community-first approach with neutral incentives. The treasury wallet activity suggests something different might be happening.
What Comes Next for Linea
Without clear communication from the team, this story could take a darker turn. Some users are already calling for major exchanges to delist the token unless transparency improves.
This treasury wallet controversy represents a critical moment for Linea and perhaps for Layer 2 ecosystems more broadly. As evidence of significant token outflows during what should have been a period of community building mounts, the pressure on Linea to address these concerns grows.
Maybe the project has explanations for these movements. Perhaps there are legitimate reasons for the transfers. But without those explanations being shared publicly, trust continues to erode.
The broader implication here is that retail confidence in Layer 2 tokens might be reaching a breaking point. If projects can’t demonstrate better stewardship of their treasuries and more transparent token distribution, the entire sector could face sustained skepticism.
It’s worth noting that Layer 2 solutions still provide real technical value. The scaling benefits are tangible. But token economics and treasury management seem to be separate challenges that many projects are struggling with.
For Linea specifically, the path forward likely requires immediate transparency about treasury operations and clearer communication about token distribution plans. The alternative, I suspect, is continued price pressure and diminishing community support.
