The analyst warns of critical flaws in the list of Athena Token (ENA).
Ethena USD, a synthetic dollar stablecoin, has faced critical reviews. TardFiWhale, a well-known blockchain sleuth, has highlighted “critical flaws” in Etena's system.
Despite raising more than $1.5 billion, Etena is now grappling with vulnerabilities that could put users' investments at risk.
TradFiWhale raises concern despite Etena token listing.
TardFiWhale, which has a track record of exposing financial missteps such as the Terra Luna ecosystem collapse, warned of Etena's structural weaknesses.
“They are paying me to stop posting Etena. “How they launched a bug bounty program that allowed insiders to cash in on their participation in the Shard campaign without publicly disclosing material risks,” TradFiWhale explained.
Given the history of foresight, these concerns carry considerable weight, prompting Etena's stakeholders to exercise caution.
Read more: How to use Etena financing to offset USDe
Moreover, TardFiWhale's donation request adds to the plot to reveal these flaws. He initially sought $500,000 and allocated the funds to prominent entities such as the Protocol Guild and Legal Defense. Later, showing the seriousness of the problems, he raised the amount to $1 million.
Reflecting past crises in the crypto domain, TradFiWhale says its aim is to prevent another financial disaster.
On the contrary, Etena is expanding its presence. ENA's simulation shows the development stage of airdrop launch.
The ENA token has been listed on major central exchanges since April 2nd at 8:00 AM UTC.
This follows a successful $14 million round of funding, valuing Itena at $300 million. Prominent investors, including Dragonfly and Arthur Hayes' Maelstrom, have shown faith in his potential.
Ethena USD is floating in the stability coin market. Unlike traditional stablecoins, it does not rely on fiat or asset backing. Instead, it uses a unique approach using derivative hedging and arbitrage to maintain currency stability.
Read more: Etena protocol and the US dollar What is a synthetic dollar?
This strategy, which includes Ethereum futures and Ethereum staking, will generate mutual profits for USDe holders.
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