Crypto
Concerns Rise Over EigenLayer Token Supplies After Launch
The new EIGEN token sees a significant drop in value amid scrutiny over transparency and staking rewards.
1 min read
EigenLayer Faces Criticism After Token Launch
EigenLayer has faced backlash following the release of its EIGEN token, particularly concerning the unrestricted staking rewards for early investors.
- Price Action: The EIGEN token soared to $4.39, but has since fallen to around $3.57—a reduction of over 20% post-launch.
- Transparency Woes: Stakeholders and community members have raised alarms about transparency over token supply, with 1.68 billion total and 186 million in circulation, sparking questions about early investors' benefits.
Key Issues:
- Similar Launch Concerns: The situation echoes events from other tokens like Celestia, which saw a 75% decline when early investors were allowed to exchange staking rewards.
- Unrestricted Rewards: TardFiWhale.eth highlighted that recent changes to documentation revealed that Eigen Labs investors can stake without lock-up periods for rewards.
Historical Context:
Historically, the token launch for EigenLayer has resulted in price volatility, as evidenced by the turbulent performance since it went live.
Financial Snapshot:
- Initial launch price: $4.39
- Current trading price: $3.57
Stay updated as developments unfold within the EigenLayer ecosystem.
