Justin Sun dumps another $14M of EIGEN after week of controversy
The post Justin Sun dumps another $14M of EIGEN after week of controversy appeared on BitcoinEthereumNews.com.
Following a week of drama for EigenLayer’s recently launched token, Justin Sun has deposited 3.62 million EIGEN (worth $14.1 million) to Binance. Sun had previously claimed 5.24 million airdropped EIGEN (worth $21.5 million at the time), sending it to HTX shortly after the token unlocked for trading on October 1. A sharp decline in price following both deposits suggests a large volume of EIGEN sales accompanied the moves. After a spike to $4.10 since Sun’s most recent deposit, EIGEN is currently trading around 4.00, according to data from CoinMarketCap. Read more: Justin Sun confirms he has seven fingers While Justin Sun is no stranger to controversy, over the past week, EigenLayer has also found itself the focus of criticism after several gaffes that have damaged the project’s reputation. EigenLayer purports to extend Ethereum’s ‘trust network’ to other projects by reusing, or ‘restaking,’ already-staked ETH. However, its own operations appear to be run via a system more akin to “trust me bro” rather than taking advantage of Ethereum’s trust-minimizing smart contracts. ‘Unapproved selling’ or phishing scam? Despite the widespread use of purpose-built vesting contracts for locked tokens, EIGEN had seemingly been distributed to investors under a handshake deal to not sell before an agreed-upon date. On Friday, EigenLayer took to X (formerly Twitter) to publish a ‘community update’ that it was investigating “unapproved selling activity” associated with a wallet that had received approximately 1.67 million EIGEN. Community Update We are investigating unapproved selling activity associated with this wallet: (https://t.co/Pp9KoTfACp). We will share our findings with the community as soon as possible. — EigenLayer (@eigenlayer) October 4, 2024 Read more: Curve Finance ‘gentleman’s agreement’ expires, counterparties dump CRV Later that day, EigenLayer published another ‘update’ informing users that they had fallen for a phishing email, or, as it put it, “an email…
Filed under: News - @ October 9, 2024 12:24 pm