🚨 EigenLayer Faces Criticism Over Unclear Token Allocation 🚨
EigenLayer, a highly anticipated platform, is under fire after revealing details about its insider token allocation, leading to a 22% price drop shortly after launch. Here's what happened:
📅 Launch & Early Surge
October 1st, 2024: EigenLayer launched its token, EIGEN, with an initial price surge before seeing a 15% decline.
At its peak, the token hit $4.44, but is currently trading at $3.34.
💼 Big Investments
EigenLayer attracted major attention, securing $100 million in investments from big names like Andreessen Horowitz.
The platform aims to compete with Lido, the top liquid restaking protocol on Ethereum.
📊 Token Allocation Controversy
EigenLayer initially promised that most of the EIGEN tokens would be locked for at least a year.
🚫 Contradiction: Despite the promise, it was revealed that early investors could access and sell the rewards from their locked tokens.
Breakdown of token allocation:
29.5% for early investors
25.5% for contributors
🔥 Community Backlash
The news sparked frustration among the community, who believed the tokens were under a “full lock” agreement, preventing rewards from being sold.
Despite these frustrations, traders remain optimistic about EIGEN's potential.
📉 Current Market Standing
Price: $3.34 (down 15% in the last 24 hours)
Market Cap: $624,124,457
Rank: 85th by market capitalization
⚖️ Conclusion
EigenLayer's journey is off to a rocky start due to missteps in transparency over token allocation. However, with strong backing from major investors and optimistic traders, EIGEN may still have potential in the long run. Stay tuned for updates on whether the platform can regain trust and deliver on its promises.
⛔ Do Your Own Research (DYOR) before making any investment decisions!
