As a seasoned analyst with over two decades of experience in the cryptocurrency market, I must say that the allegations against Ethena Labs are troubling, to say the least. The use of company tokens for farming rewards is a red flag that raises serious questions about the ethics and intentions of the team.
Ethena Labs denies allegations suggesting they exploited 180 million of their own tokens to secure rewards in a cryptocurrency farming event they organized.
Crypto investigator Nomad accused synthetic dollar issuer Ethena Labs of participating in its Season 3 farming program with around $61 million worth of (ENA) coins received from a Coinbase Prime wallet address. According to the web3 sleuth, Ethena team wallets staked around 25% of ENA’s total supply during the farming events.
It is alleged that this feature enabled those with inside knowledge to manipulate the system, outperforming regular users. Furthermore, Nomad asserted that these tokens should have been securely stored and non-transferable. The problem arises from past disputes regarding the protocol’s rewards programs during Seasons 1 and 2.
As an Analyst, I wish to bring your attention to a crucial update regarding ENA/USDe holders:
— Nomad (@Nomad02887202) October 27, 2024
Ethena Labs’ response
Ethena Labs countered the accusations, clarifying that the disputed tokens had indeed been unlocked as per a previously announced vesting plan. The system dismissed allegations of insider trading and made it clear that the identified wallets would not be entitled to any rewards or airdrops.
As an analyst, I’ve found that the wallets in question hold foundation tokens that align with our specified criteria. However, it’s crucial to note that Ethereal’s foundation has clarified to us that these tokens will not be eligible for any airdrops or related incentives.
Ethena Labs statement
The controversy surrounding the Nomad’s assertions and the skepticism within the community has been a recurring theme since they introduced their stablecoin USDE. Notable figures in the crypto world like Andre Cronje have voiced concerns about the token’s structure and collateral system, which seem to resemble the collapsed Terraform coin UST.
In spite of some challenges, USDe boasts a market capitalization of $2.61 billion and Ethena Labs has forged a partnership with financial giant BlackRock for their stablecoin. This Ethereum-centric project is also proposing a community-driven initiative to develop an exchange centered around USDe.
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2024-10-28 21:52