As a seasoned researcher with over two decades of experience in the cryptocurrency market, I’ve seen my fair share of ups and downs. The recent developments surrounding EigenLayer have certainly piqued my interest, and not in a good way.
It appears that EigenLayer finds itself in a tricky situation following their admission of not providing complete transparency regarding the distribution of their internal tokens. This revelation came to light after the platform launched its token on October 1st, which initially experienced a significant price increase, but subsequently dropped by 22%.
Upon its debut in April, EigenLayer successfully garnered significant investments totaling $100 million, among which was a contribution from Andreessen Horowitz, along with others. The firm had earlier declared its ambition to challenge Lido, currently the largest liquid restaking protocol on Ethereum.
Initially, the unstable platform assured that around three quarters of the EIGEN tokens would be secured for at least a year. A part of this reserve was earmarked for early backers and supporters, amounting to approximately 29.5%. Meanwhile, about 25.5% was marked for contributors.
At first, the platform stated that the majority of its EIGEN tokens were subject to a “complete freeze” arrangement, which was intended to prevent affluent insiders from liquidating their rewards. It’s now been discovered, however, that these insiders have managed to unlock and access their rewards despite this agreement.
In a recent statement on platform X, EigenLayer clarified that initial investors can offload the returns they’ve earned from their held tokens. Contrary to prior assurances, this appears to go against the commitment for a “complete lock”.
Eigen Labs and Eigen Foundation posted disclosures on the treatment of investor staking rewards, which we summarize in this tweet, responding to community questions.
– Eigen Labs disclosure:
– Eigen Foundation disclosure: …— EigenLayer (@eigenlayer) October 2, 2024
As a researcher, I’ve observed that my community members have expressed frustration due to their belief that the locked tokens in question should not provide tradeable rewards.
Despite anger towards the VC’s, traders remained optimistic towards the token. EIGEN, has made a strong market debut following its unlock on October 1, 2024
Currently, as I speak, the token is being exchanged for $3.34, representing a 15% decrease over the past 24 hours following its launch peak of $4.44. The current market capitalization of EIGEN stands at approximately $624 million, placing it at rank 85.
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2024-10-03 00:36