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EigenLayer’s EIGEN airdrop may signal the end of once-popular “stitches.”

Published

3 months ago

12 May, 2024

EigenLayer's EIGEN airdrop may signal the end of once-popular "stitches."

What is perhaps the most publicized cryptocurrency launch ever will begin on Friday, but not necessarily with the kind of enthusiasm its creators might have hoped for.

EigenLayer, a renewal platform on Ethereum, it accumulated cryptocurrency deposits worth $16 billion in the first year of opening to users, even before its official commercialization. launched last month. When most of that money arrived, the project was little more than a glorified blockchain wallet on the Ethereum blockchain: a non-functional safe that held the prospect of future rewards but still had no actual features. (Although the project “launched” its joint security service in April, many mission-critical features they remain missing).

But it is the details of token distribution that have generated the most criticism about X and other social media platforms. The tone has become so negative that some industry officials are wondering whether it will lead to the end of the wildly popular crypto incentive system known as “points” rewards.

As the main incentive model, EigenLayer depositors were rewarded points – counts tracked by EigenLayer and other third parties accumulated based on how much a person has deposited into the project and for how long. The dots were not themselves crypto tokens, but most depositors expected that they would eventually be converted into them, an expectation that followed months of similar programs from other emerging crypto projects.

In addition to earning points by depositing on EigenLayer, some people started trading them directly on platforms like Pendle, which offered up to “40x leverage” on trading points.

EigenLayer’s points program helped it attract users and attract billions of dollars, but when the EIGEN token airdrop was finally announced last week, the project’s community erupted in anger.

First, it was revealed that the tokens would not be transferable until a yet-to-be-determined future date, meaning users would have to wait even longer to cash out their investments.

“Although there was purposely no communication saying that the token would be transferable on day one, the fact that the EigenLayer points program has been going on for almost a year has certainly led to the expectation that depositors would be able to able to claim their tokens on day 1,” said Luxas Outumuro, who leads research at IntoTheBlock, a blockchain market intelligence firm. “It is understandable that they want to further decentralize their token, but this was a mismanagement of expectations that was not adequately addressed.”

Further backlash revolved around EigenLayer’s decision to limit its air launch to users from select regions, even though the project had not imposed geographic restrictions on users making deposits and earning points. Users from more than a dozen countries, including the United States, Canada and China, will be barred from the airdrop.

“There was so much ‘wink, wink’ going around about points and how they were making an infinite-sum game where everyone would win and all that shit. And then they basically cut off two-thirds of the potential users and recipients of the airdrop,” said an EigenLayer venture investor who agreed to speak on condition of anonymity. “I think it’s absolutely right to isolate the United States from an airdrop, but then not let them use it in the first place.”

More criticism has come over the “Season 1” token distribution plan, which will put EIGEN tokens in the hands of some point earners but force others to wait for a “Season 2” airdrop that has not been detailed. This means that users who have deposited to EigenLayer via some liquid retaking services and other third-party platforms do not yet know how many EIGEN tokens they will receive, despite these services being responsible for a large portion of EigenLayer’s overall deposits.

“EigenLayer chose to allow others to, in a sense, remortgage and play all these crazy games. They could have just said, ‘No, don’t do that. We’re not committed to honoring these points.’ ,’” said Mike Silgadze, founder of the liquid restaging platform Ether.Fi.

EigenLayer he revised his symbolic plans in response to backlash from the community, but the changes are unlikely to be enough to bring EigenLayer back into the crypto community’s good graces.

EigenLayer isn’t the only recent project that has struggled to meet the expectations set by a points-based program.

Renzo, addressed a liquid restaking protocol on EigenLayer similar backlash last month when its points system failed to meet investor expectations. Blur, one of the creators of crypto points, received criticism for repeatedly extending its points window and changing the rules on when and how tokens would be distributed on planes.

Some point programs have turned into airdrops with little controversy, but more and more of them – particularly larger projects, like EigenLayer – have led to disappointment.

Many investors are starting to think that the practice, which has become ubiquitous among crypto startups, may finally be nearing an end.

Silgadze explains that the points were a way to “encourage protocol activity before the token launch.” This improved on the old system, where users “farmed” for an airdrop by interacting with a blockchain protocol, but didn’t know exactly what kind of activities would ultimately lead to the airdrops. Points-based systems “give a lot more clarity to people about what the protocol wants you to do,” Silgadze said.

While point systems are a great way to attract potential users, they also exist as a result of regulatory protection. Crypto companies are reluctant to sell tokens directly in ICO (Initial Coin Offer) style.as this could put them in the crosshairs of regulators.

But when it comes to protecting investors and offering transparency, Robert Leshner, founder of Compound and Robot Ventures, an investor in EigenLayer developer Eigen Labs, thinks the dots are the worst of all worlds. “The main goal of investor protection is to make sure that there is no information asymmetry between investors and sponsors. And the dots create the largest information asymmetry that exists in the cryptocurrency industry,” he said. “Everything is at the discretion of the team and users and investors just pray to be treated right by the team.”

Leshner believes last year’s streak of failed points will eventually lead to the practice of extinction.

“When you see one of the biggest, most ambitious, most authentic projects in all of crypto, EigenLayer, f*ck a points program: If EigenLayer can’t do it properly, who can do it? Nobody can do it.”

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Related Topics:Airdrop Eigenlabs EIGENLAYER ethereum

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Top 5 PolitiFi Tokens to Buy Now for MAX Profits

Published

25 mins ago

27 July, 2024

TokenTalk Staff

Coinpedia - Fintech & Cryptocurreny News Media

With the US presidential election fast approaching, the cryptocurrency world is buzzing with new trends. In addition to the well-known cartoon-themed meme coins, a new category is making waves: PolitiFi tokens. Did you see that coming?

These politically themed crypto tokens are gaining attention, especially those centered around former President Donald Trump. Today, we explore the 5 trending Trump-themed PolitiFi tokens.

Stock up to benefit later!

1. Trump (Magazine)

Launched about a year ago, the Trump-themed MAGA token has caused quite a stir in the cryptocurrency ecosystem. Inspired by Donald Trump’s slogan “Make America Great Again,” the MAGA token has produced an astonishing 35 million percent return since its inception. Currently trading at $5.65, it has fallen 8.80 percent in the past 24 hours.

Despite this, the token’s trading volume increased by 23.23%, bringing its market cap to $248 million and securing the 220th spot on CoinMarketCap.

Source: Dexscreener

2. MAGA (MAGA)

Another token with the same ticker, MAGA, is also trending in the PolitiFi category. With 390 billion tokens in circulation, this MAGA token has seen a 11.08% price drop over the past 24 hours, but an 81.39% increase in trading volume. Currently trading at $0.0001337, it is ranked 21st on Dexscreener’s trending list and 522nd on CoinMarketCap. Despite being only two months old, it has provided early adopters with a remarkable profit of 313,373.62% at its all-time high of $0.0007354.

Source: Dexscreener

3. Super Trump Coin (STRUMP)

Super Trump Coin, a meme token depicting Donald Trump as Superman, has a circulating supply of 1.8 billion tokens. Over the past 24 hours, its trading volume has increased by 39.88%. Currently trading at $0.01112, it has dropped by 6.07% over the past 24 hours, but holds a CoinMarketCap rating of 776. From its all-time high of $0.03085, it has dropped by 64.06%. Despite this, its impressive short-term returns have made it a favorite among Trump crypto enthusiasts.

Source: Dexscreener

4. MAGA Vice President (MVP)

Launched just four months ago, MAGA VP has yet to break into the top 1000 cryptocurrencies on CoinMarketCap, currently ranked 1231st. With a value of $0.128, its trading volume has increased by 21.79% over the past 24 hours, with a market cap of $5.3 million. While it is up 110% at its current price, it is down 83.24% from its all-time high of $0.7706.

Source: Dexscreener

5. Little Trump

One of the most unique Trump-themed tokens is Baby Trump, which depicts Donald Trump as a baby president. With a circulating supply of 406 million tokens, it has a market cap of $3.5 million at a trading price of $0.008616. Although its price has dropped 9.45% in the last 24 hours, its trading volume has increased by 4.29%. At its peak, Baby Trump’s market cap was $11 million.

Notably, Baby Trump is the only token among the five analyzed to be based on the BNB Smart Chain, while the others are based on the Ethereum network.

Source: Dexscreener

It’s an exciting time for cryptocurrencies

The current political climate in the United States is spawning a new wave of meme tokens themed around various political figures. Among them, Trump-themed PolitiFi tokens are experiencing the most significant surge in popularity. Support for Donald Trump in the crypto community seems to be a driving force behind the success of these tokens.

Do you think Trump-themed PolitiFi tokens are here to stay or just a passing trend? Share your thoughts.

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News

Brett Token Price Soars 12%; Analyst Expects Further 30% Upside

Published

1 hour ago

27 July, 2024

TokenTalk Staff

Eight altcoins rally 10+% as volatility swings market

Brett, the largest meme coin in Blockchain Base, rose more than 12% on Friday, as sentiment in the cryptocurrency and stock sectors improved.

Brett (BRETT) the token rose to $0.133, up 31% from its low this month. Some traders believe the meme coin has more upside potential in the future.

Analyst is bullish on Brett

In an X-post, Michael van de Poppe, a trader with over 721,000 followers, said he is optimistic that the token will rise to $0.1712, up 30% from Friday’s trading level.

I’ve been a day trader for a long time and memes are a great way to gain that perspective.

Lots of volume.
And there’s a lot of volatility.

When it comes to $BRETTI would look for long positions in this area between $0.125-0.1325 and $0.170 as a clear identification of a potential bull run. photo.twitter.com/hWmSjCZGJa

— Michaël van de Poppe (@CryptoMichNL) July 26, 2024

If he is right, Brett’s market cap will surpass Floki’s (FLOKI), which has a market capitalization of $1.7 billion.

Brett’s bounce came at the start of the Bitcoin 2024 conference today. In a statement at the event, Robert Kennedy, an independent presidential candidate, noted that he is a big supporter of Bitcoin (BTC).

The main protagonist of the event will be Donald Trump, leading in most polls, included in Polymarket. Trump is expected to reiterate his support for cryptocurrencies. Analysts are divided on whether he will announce a Bitcoin reserve at this event.

Blockchain Base is doing well

Brett token also recovered as Base blockchain ecosystems continued to perform well. Launched in 2023 by Coinbase, Base has accumulated over $1.6 billion in DeFi assets, making it the sixth largest chain in the industry. It has surpassed popular networks like Cardano (ADA), Avalanche (AVAILABLE) and Polygon (MATIC).

At the same time, Brett and other altcoins jumped as the U.S. stock market rebounded, signaling that investors have embraced risk-on sentiment. The Dow Jones Industrial Average rose more than 600 points, while the S&P 500 and Nasdaq 100 jumped more than 80 basis points.

Brett Price

Brett Price Chart | Source: Trading View

Technically, Brett formed a morning star pattern, which is a popular reversal sign. In the past, the coin has risen by double digits when it has formed this pattern. For example, it formed on July 12 and then rose by 40%.

On the other hand, this bounce could be a dead cat bounce, where an asset briefly rises and then resumes its downtrend.

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News

Top 5 PolitiFi Tokens to Buy Now for MAX Profits

Published

2 hours ago

27 July, 2024

TokenTalk Staff

These politically themed crypto tokens are gaining attention, especially those centered around former President Donald Trump. Today, we explore the 5 trending Trump-themed PolitiFi tokens.

Stock up to benefit later!

1. Trump (Magazine)

Despite this, the token’s trading volume increased by 23.23%, bringing its market cap to $248 million and securing the 220th spot on CoinMarketCap.

Trump Themed Political Token -TRUMP - Price Chart Source: Dexscreener

2. MAGA (MAGA)

Source: Dexscreener

3. Super Trump Coin (STRUMP)

Source: Dexscreener

4. MAGA Vice President (MVP)

Source: Dexscreener

5. Little Trump

Notably, Baby Trump is the only token among the five analyzed to be based on the BNB Smart Chain, while the others are based on the Ethereum network.

Trump Themed Political Token - BABY TRUMP - Price Chart Source: Dexscreener

It’s an exciting time for cryptocurrencies

Do you think Trump-themed PolitiFi tokens are here to stay or just a passing trend? Share your thoughts.

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News

Binance Completes Render (RNDR) Token Swap and Rebranding to Render (RENDER)

Published

5 hours ago

26 July, 2024

TokenTalk Staff

Binance to Delist OMG, WAVES, WNXM, XEM from 2024-06-17

Lorenzo JengarJul 26, 2024 10:26 AM

Binance has successfully completed the token swap and rebranding of Render (RNDR) to Render (RENDER), opening new trading pairs and enabling deposits and withdrawals.

Binance, a leading cryptocurrency exchange, has successfully completed the token swap and rebranding of Render (RNDR) to Render (RENDER), according to an official announcement from the company. The transition marks a significant milestone for the platform and its users, as deposits and withdrawals for the new RENDER tokens are now open.

New trading pairs and availability

Following the rebranding, Binance has opened spot trading for several new pairs involving RENDER. These pairs include RENDER/BTC, RENDER/USDT, RENDER/FDUSD, RENDER/USDC, RENDER/TRY, RENDER/EUR, and RENDER/BRL. Trading began on July 26, 2024, at 08:00 (UTC). Users engaging in Spot Copy Trading wallets can add these pairs by enabling them in the Personal Pair Preference section of the Spot Copy Trading settings.

Token Distribution and User Instructions

The token exchange was conducted at a ratio of 1 RNDR to 1 RENDER. Users can view the token distribution history via their Binance wallet history. Additionally, there are new RENDER token deposit addresses available for users to obtain.

It is important to note that deposits and withdrawals of the old RNDR tokens are no longer supported. Users are advised to update their wallet addresses and ensure that all transactions involve the new RENDER tokens to avoid any issues.

General information and disclaimers

Binance noted that there may be discrepancies in translated versions of this announcement and that users should refer to the original English version for more accurate information.

For more detailed information, users can refer to the official announcement on Binance website. Source.

As always, Binance reminds users to be cautious with their investment decisions. The platform is not responsible for any losses incurred due to market volatility. Users should consider their own financial situation and consult independent financial advisors if necessary.

Image source: Shutterstock

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