EigenLayer Crypto's Biggest Project This Year Removes LST Caps, Unpause Restaking Deposits

Technology

EigenLayer Is A Typical VC Scam, Says Ran Neuner – Crypto News

Published

12 months ago

April 30, 2024

Dripp

Ran Neuner, a prominent figure in the crypto community, has voiced skepticism regarding EigenLayer, characterizing it as a typical VC scam. Neuner identified several warning signs associated with EigenLayer, including the early involvement of venture capitalists (VCs) at low valuations and a high initial market valuation aimed at retail investors.

He also raised concerns about preferential treatment for insiders and VCs in the distribution of tokens. Additionally, Neuner highlighted issues such as restricted access to token airdrops in regions that could benefit from blockchain technology and token lockup periods that disproportionately impact retail investors.

EigenLayer Unveils Plans for EIGEN Token and Distribution

EigenLayer recently unveiled its plans for the EIGEN token through the release of its Whitepaper, sparking anticipation in the crypto ecosystem. The protocol outlined the role of the EIGEN token as a central component of the EigenLayer ecosystem, with multiple use cases.

EigenLayer intends to introduce a total token supply of 1.67 billion, allocating portions for staking airdrops, community programs, ecosystem development, and investor distributions. Notably, early contributors will receive a significant share of the token supply, subject to a mandatory three-year lockup period.

Also Read: Cardano Whale Transactions Explode Hinting At ADA Price Reversal In Short Term

Reaction and Analysis within the Crypto Community

Ran Neuner’s remarks about EigenLayer have ignited discussions within the crypto community, prompting varying reactions. Some individuals echo Neuner’s concerns, questioning EigenLayer’s token distribution model and its potential impact on retail investors. Critics argue that the project’s structure may unfairly advantage insiders and early contributors.

In contrast, supporters of EigenLayer highlight its innovative features and the credibility of its VC backers. They suggest that criticisms leveled against the project may be premature or exaggerated. Overall, the discourse surrounding EigenLayer underscores broader issues of transparency, fairness, and trust within the crypto ecosystem, emphasizing the importance of thorough due diligence for investors.

Also Read: Hong Kong’s Crypto ETFs Signal Gateway For Chinese Investors