EIGEN token price fell sharply post-unlock, sparking investor concerns and market volatility.
A mishandled transfer from a compromised account worsened sentiment around EigenLayer’s unlock.
Despite the decline, EigenLayer’s growing operator base indicates potential long-term growth.
EigenLayer’s token unlock, which happened last week, has led to disputes and price fluctuations, worrying investors. The token’s price has been falling since the unlock, raising questions about what may have gone wrong.
After its initial launch, EIGEN’s price opened at $4 but quickly fell by 20%, trading around $3.30 by the end of the week. The token price decline slowed down between Thursday and Friday, but concerns over the protocol’s airdrop process grew.
Concerns emerged following Friday’s questionable transfer of $5.5 million worth of EIGEN tokens, which some believed broke the token lockup schedule.
EigenLayer clarified that the incident was a security breach. A compromised email account associated with an investor allowed the transfer of over 1.6mn EIGEN tokens to an unauthorized party.
Source: Kaiko
The EigenLayer team said this was an isolated incident, but m…
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