ZRO Token Falls 17% Amid LayerZero ‘Not Airdrop’ Controversy
LayerZero, the newly launched token for cross-chain support protocol LayerZero (ZRO), has dropped 17% after one day of launch.
Some people disagree and think the strategy could be the right move to address the issues that have plagued recent token airdrops.
After launching on June 20, ZRO surged 15.15% to $4.71 in 20 minutes before falling 22% in two hours, a pattern often seen in token weather as seekers dump their newly acquired tokens.
In this case, the launch of ZRO came with its own unique controversy. LayerZero allows users who want to claim the tokens to donate a small amount of money in ZRO tokens.
“To claim ZRO, users must donate $0.10 per ZRO in USDC, USDT or native ETH. This small donation goes directly to the Protocol Guild,” wrote LayerZero in a June 20 X post.
LayerZero predicts that the donations will donate approximately $18.5 million to Protocol Guild.
The move was met with a wave of backlash from the crypto community, with users arguing that it would change the “climate” nature of initial coin offerings (ICOs) where users would have to pay a “tax.”
Users flocked to LayerZero's post with comments including “this is a joke” and “how much would you pay for that”.
LayerZero ZRO reconfirms that the launch is “not a drop of air”.
LayerZero insists that its recent launch is “not a drop in the air.”
In a June 20 statement, LayerZero argued that airdrops will no longer be used for “fair distribution, community building, and protocol health purposes, as airdrops were originally introduced to resolve.”
This is primarily due to the long-term success of the project due to the “little to no interest” of recipients due to improvements in airdrop farming and Sybil's components, citing entities that create and use multiple bags for airdrop farming. .
LayerZero co-founder Brian Pellegrino seems to have spent his time defending the token launch, reiterating that no one has access to the tokens and that users should refrain from claiming them if they don't want to donate.
“No forced donation, if you don't want to donate… simply don't ask. It's not what you own, it's what's offered,” he said.
“Such an unreal day as I've been tired in my entire life. Sleep indefinitely with notifications. May God grant us all,” Pellegrino added.
Related: Tensions in the DeFi Industry Exposed by LayerZero's Anti-Sybel Strategy
Meanwhile, some members of the crypto community agree that ZRO's donation request method could be a step in the right direction for future airdrops.
“People whining about the donation on the LayerZero airdrop are dumb,” Adam Cochran said in a June 20 X post, noting that the donation will be used to support a “great ecosystem” and that it's “a great way to prepare for a basic spending value.” token”
“It's a good way to increase costs on CIB operations, which will reduce the likelihood of CIB in the future,” he said.
Last week at ZkSync's June 17 airdrop launch, a few Sybil wallets managed to bypass the system, although they used a “transparent” Sybil detector in addition to a “special airdrop design” to ensure maximum organic user numbers.
“While people are drooling over the ZRO Airdrop, the claims page UI/UX is super clean and the smoothest I've ever seen. It's just as wrapped as Spotify,” added Conor King, developer of Irys.
According to CoinMarketCap data, ZRO is currently at $3.35, down 17% in the last 24 hours.
Magazine: Tyler Warner Drops 1,000 ETH Due to ‘Rock Star Complex': NFT Collector
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
