#EIGENonBinance EigenLayer token kicks off trading — some risks to watch amid the hype

GM, Tigar here.

EigenLayer’s token hits the market.

Mango Markets settles with the SEC.

How two DeFi founders turned their rivalry into a bromance.

EIGEN token trades

Six months after EigenLayer airdropped its token, holders can finally sell it.

On Tuesday, the Eigen Foundation, the non-profit that manages the EIGEN governance token, upgraded EIGEN’s code to make it tradable.

Traders are flocking to EIGEN hoping to profit from the volatility.

Bulls have a decent amount going for them:

Estimates put only 2.5% of EIGEN’s supply as available for trading.

EIGEN unlocks for the protocol’s team and investors won’t begin for one year.

The wider crypto market is pumping.

There are also reasons to be cautious:

Whales hold a lot of tokens. The top wallet has over 2.5 million.

Most airdropped tokens this year have failed to rally.

EIGEN’s fully-diluted valuation is already over $7 billion.

Tokens that launched at similar high valuations to EIGEN have performed poorly.

The EIGEN token’s May launch was marred by controversy.

Recipients criticised the confusing communication surrounding the announcement, the small number of tokens allocated for the airdrop, and the decision to exclude US users.

In response, EigenLayer addressed the confusion and increased airdrop allocations for small users.

SEC ends Mango DAO

The US Securities and Exchange Commission announced Friday a settlement with the companies behind Solana DeFi protocol Mango Markets.

Mango DAO, Blockworks Foundation, and Mango Labs agreed to collectively pay fines of $700,000 without admitting or denying the allegations from the SEC.