EigenLayer Faces Controversy Over Misleading Investors and Token Availability

• EigenLayer leaders admit to misleading investors about locked EIGEN token supply and allowing insiders to cash out rewards.
• The protocol's fully diluted value has dropped 60% since April.
• EigenLayer received $100 million in funding from Andreessen Horowitz and other investors.
• Restaking protocol promised to lock majority of EIGEN token supply, but insiders were able to cash out.
• Lack of transparency led to confusion about token's circulating supply and investment decisions.
• EigenLayer updates documentation to address transparency concerns from community.

Summary :
EigenLayer leaders have admitted to misleading investors about the availability of its EIGEN tokens for sale. Despite claiming that a majority of the token supply was locked and not for sale, insiders were allowed to cash out rewards. The lack of transparency has led to concerns about the true circulating supply of the token and has affected its value, which has dropped by 60%. EigenLayer has since updated its documentation to address these concerns. The protocol had received significant investments from venture capital firms, including Andreessen Horowitz.

Sources :

- Protos
- Coindesk
- TheBlock
- CoinTelegraph