EigenLayer’s token unlock has led to disputes and price fluctuations, worrying investors. The token's price began falling post-unlock, raising questions about potential issues.

Impact of Token Unlock on Price

After its initial launch, EIGEN’s price opened at $4 but quickly fell by 20%, trading around $3.30 by the end of the week. The token price decline slowed down between Thursday and Friday, but concerns over the protocol’s airdrop process grew.

Security Issue and Its Consequences

Concerns arose following Friday’s questionable transfer of $5.5 million worth of EIGEN tokens, which some believed broke the token lockup schedule. EigenLayer clarified that the incident was a security breach: a compromised email account associated with an investor allowed the transfer of over 1.6 million EIGEN tokens to an unauthorized party.

Potential for Long-term Growth

Despite the decline, EigenLayer’s growing operator base indicates potential long-term growth.

The overall situation with EigenLayer’s token unlock underscores the need for enhanced security and token distribution strategy. Despite the temporary challenges, potential growth prospects attract investor interest.