EigenLayer’s $15 billion token launch has sparked division by excluding the US and China
EigenLayer, a decentralized finance (DeFi) protocol valued at $15 billion, is generating both anticipation and controversy within the crypto community ahead of its forthcoming token launch. The project plans to distribute its highly awaited EIGEN token through an airdrop scheduled to commence this Friday.
However, the excitement surrounding the free token distribution is overshadowed by controversy stemming from the exclusion of users residing in the U.S., China, and various other regions. Eigen Labs, the driving force behind EigenLayer, attributed this exclusion to regulatory uncertainties affecting users from the U.S. and China.
Predictably, this decision has faced criticism from members of the crypto community. Kunal Goel, an analyst at Messari, pointed out that the promise of the EIGEN token airdrop has been a significant incentive for users to engage with the platform.
Given the new restrictions, Goel expressed concern that many early supporters would be unable to claim their tokens. The restrictions even extend to VPN users and residents of certain other countries. Similarly, Nick Cote from Secondlane voiced dissatisfaction with Eigen Labs’ lack of transparency regarding jurisdictional restrictions. “Issuers not disclosing jurisdictional restrictions upfront leaves a negative impression,” Cote remarked.
Meanwhile, in a recent podcast appearance, Robert Drost of the Eigen Foundation underscored the importance of adhering to regulatory guidelines.
In response to criticism from the crypto community, EigenLayer revised its airdrop plans by announcing an additional allocation of 28 million EIGEN tokens. Notably, earlier this year, Eigen Labs secured approximately $165 million in funding from investors, including the prominent a16z (Andreessen Horowitz).
According to DeFiLlama, EigenLayer has amassed an impressive $15.01 billion in assets since its soft launch earlier in 2023. Furthermore, the project has surpassed other DeFi applications in popularity, partially impacting liquid staking platforms like Lido and Rocket Pool, which have experienced a 27% decrease in total value locked since March, with nearly 4% of all ETH now staked on EigenLayer.
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