The new LayerZero (ZRO) token, based on the LayerZero interconnect protocol, fell 17% just a day after its launch. The company's founder is defending the controversial donation criteria for receiving tokens, which some have compared to a "tax." 😮

After launching on June 20, ZRO jumped 15.15% to $4.71 in just 20 minutes, then fell 22% within two hours. This pattern is often seen in token distributions where participants dump their newly acquired tokens.

LayerZero insists that the recent launch "is not a token distribution." In a June 20 statement, LayerZero argued that token distributions no longer further the “goals of fair distribution, community building, and protocol health.”

ZRO briefly peaked at $4.7 before falling below $3.50. Source: CoinMarketCap

ZRO is currently trading at $3.35, down 17% in the last 24 hours, according to data from CoinMarketCap.