Coin Edition -
- The $15B valued DeFi EigenLayer launches its EIGEN token airdrop today.
- However, due to regulations, EigenLayer excluded users from the U.S. and China.
- Analysts criticized the lack of transparency as early supporters are blocked from the airdrop.
EigenLayer, a $15 billion valued decentralized finance (DeFi) protocol, is stirring both excitement and controversy in the crypto scene with its upcoming token launch. The project is set to distribute its highly anticipated EIGEN token via an airdrop starting Friday.
However, the excitement about the free token distribution is marred by controversy due to the exclusion of users from the U.S., China, and other regions. Eigen Labs, the brains behind EigenLayer, cited regulatory uncertainties in the restriction posed to users from the U.S. and China.
Expectedly, the decision has drawn criticism from within the crypto community. Kunal Goel, an analyst at Messari, noted that the promise of the EIGEN token airdrop has been the primary incentive for users to invest in the service.
Given the new restriction, Goel lamented that many early supporters will be ineligible to claim their tokens. The restrictions even disqualify VPN users and residents of some other countries.
Similarly, Nick Cote from Secondlane expressed dissatisfaction with Eigen Labs’ lack of transparency about jurisdictional restrictions. “Issuers not being upfront with jurisdictional restrictions leaves a sour taste in people’s mouths,” Cote remarked.
Meanwhile, in a recent podcast, Robert Drost of the Eigen Foundation emphasized the importance of adhering to regulatory guidelines.
After being criticized by the crypto community, EigenLayer revised its airdrop plans by announcing an additional allocation of 28 million EIGEN tokens. Notably, early this year, Eigen Labs secured approximately $165 million in funding from investors, including the prominent a16z (Andreessen Horowitz).
According to DeFiLlama, EigenLayer has attracted a staggering $15.01 billion in assets since its soft launch earlier in 2023.
EigenLayer TVL | DeFiLlama
Furthermore, the project has surpassed other DeFi applications in popularity, partly affecting liquid staking platforms like Lido and Rocket Pool. These platforms have experienced a 27% drop in total value locked since March, with nearly 4% of all ETH now re-staked on EigenLayer.
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