Is EIGEN a Scam Coin? Pressure Heats Up On EigenLayer
EigenLayer has had a rocky start to it’s time on the market, but now people are calling Eigen crypto a scam coin – will it dent Eigen price?
EigenLayer’s recent token breach is a wake-up call, prompting fresh scrutiny of security practices and an urgent call for heightened vigilance in the crypto space.
A hacker hijacked an email thread, tricking the team into sending tokens to the wrong wallet. In total, the attacker walked away with $3.1 million in EIGEN tokens.
This, along with Justin Sun selling a large bag of his Eigen tokens, is making investors doubt this Ethereum-based restaking project.
Eigen Crypto: Community and Team Response
EigenLayer acted fast, teaming up with law enforcement to freeze some stolen loot. They assured everyone the breach wasn’t a protocol flaw but a crafty social engineering ploy.
“We trust Web3 to eliminate human error with smart contracts, but many projects still rely on manual handling of token vesting. We need to stop this ASAP,” commented Andreas Pensold, CEO of Pindora.
Some community members raised eyebrows over the token incident’s lack of a vesting contract. The team, however, pledged to bolster security and prevent future breaches.
Justin Sun: Is Eigen Crypto a Cabal Coin?
Crypto mogul Justin Sun, the brain behind TRON, has been a notable backer of Eigen crypto for months. Arkham Intelligence reported that Sun scored an $8.75 million airdrop from EigenLayer, which he promptly moved to HTX as the token hit the market.
Sun sold all of his Eigen crypto, showing no long-term belief in the project. This move by Sun roughly profited him $22 million.
Heavyweights like Blockchain Capital and Galaxy Digital also received EIGEN airdrops, and their next moves could sway market tides.
The Eigen Foundation is planning another token release to widen its ecosystem, promising more buzz and investor interest.
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Broader Implications For Eigen Crypto After Unlock Rescheduling
Beyond immediate crisis management, EigenLayer is setting its sights on strategic growth.
With the EIGEN token recently unlocked, the protocol is zeroing in on expanding its footprint in Web3, particularly in DeFi and gaming.
Yet, questions remain over the project’s recent rescheduling of its token unlock schedule – just one day before the anticipated distribution.
Programmatic Incentives v1 first reward rescheduled for Oct 15, 2024
The initial claim date for Programmatic Incentives v1 has been pushed back one week to October 15, 2024.
We identified a discrepancy in the implementation of Programmatic Incentives v1. To resolve this, we will…— Eigen Foundation (@eigenfoundation) October 4, 2024
As EigenLayer moves forward, prioritizing ecosystem security will be fresh in their minds – even at the cost of damaging its reputation.
This event catalyzes a broader effort to fortify security across the crypto sector.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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