DeFi
EigenLayer project bypasses US and China in token launch
EigenLayer, an emerging decentralized finance (DeFi) platform on the Ethereum network, is preparing to distribute its new EIGEN token via an airdrop this Friday. With the launch of the token, it also sparked controversy due to restrictions placed on users in the United States, China, and other countries.
Although not fully operational, EigenLayer has generated $14 billion in assets since January 2023, bolstered by a points system rewarding early adopters. According to Messari analyst Kunal Goel, this rewards system has been crucial in attracting investment.
However, the project faces challenges as it restricts users using VPNs and those from certain countries, including the United States, Canada, and China, from the upcoming token claim due to regulatory uncertainties.
Robert Drost, Executive Director of the Eigen Foundation, highlighted the need to adhere to regulatory guidelines in the rapidly evolving crypto landscape. The foundation’s cautious strategy highlights a broader problem in the DeFi sector, which is grappling with unclear regulations.
The initiative is backed by significant investment, with Eigen Labs securing approximately $165 million from various backers, including notable industry player, a16z Crypto. As EigenLayer continues to expand its features and services, the crypto community is watching closely, anticipating the potential impacts of its innovative financial models on the broader Ethereum ecosystem.
Read also : EigenLayer Airdrop: What is the controversy surrounding the EIGEN token?