As a seasoned crypto investor with battle scars from numerous market fluctuations and project collapses, I find myself once again at the crossroads of trust and skepticism with Ethena Labs. The recent allegations by Nomad, a respected figure in the crypto community, have raised red flags about potential misuse of tokens during their farming events.
The Ethereum-linked artificial dollar system, known as Ethena Labs, has been accused of improperly using approximately 180 million ENA tokens during a recent farming activity.
The allegations originated from an individual known as Nomad, a cryptocurrency investigator, who asserts that the team behind Ethena controls approximately one quarter (25%) of all staked ENA during their ongoing Season 3 yield farming initiative.
Nomad cautioned that this action might “substantially reduce the benefits” for truthful users, particularly those possessing Ethena USDE (USDE) coins.
The investigation highlights six wallets linked to Ethena Labs, which supposedly received the 180 million ENA tokens from a Coinbase Prime Custody account. These wallets have been earning rewards for farming Sats.
Following the introduction of the SENA staking scheme in September, it’s said that these wallets garnered approximately 20% of all Ethereal (ETRL) points allocated for community members. The incentives amassed in these wallets encompass both Satoshis (Sats) and Ethereal (ETRL) points.
Nomad expressed doubts about the transparency of Ethena’s handling of user funds, questioning, “It seems unclear how much income from subscription fees and staking rewards Ethena is earning from its $2.6 billion user fund.
In reply, Ethena explained that the ENA tokens under discussion were foundation tokens that have been unlocked and qualify for involvement.
Nevertheless, it’s important to mention that they haven’t clarified the potential impact on the community from this development, which has left quite a few ENA token holders feeling concerned. Additionally, Nomad highlighted concerns about Ethena’s past staking events, specifically citing instances where users suffered losses during Seasons 1 and 2.
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2024-10-28 21:24