The Wormhole Foundation has opposed LayerZero's acquisition plan for Stargate Finance, raising questions about the valuation and future of the cross-chain protocol.
LayerZero's Acquisition Proposal
LayerZero has made a $110 million offer for Stargate Finance, which equates the exchange of all circulating STG tokens for LayerZero's ZRO tokens. This proposal has drawn attention to governance and valuation issues within the cross-chain protocol space.
Wormhole's Response and Crypto Market Reaction
In response to LayerZero's offer, Wormhole has actively contested it, stating that the bid undervalues Stargate. This has led to an increase in prices of related cryptocurrencies, particularly STG and W tokens, while LayerZero's ZRO tokens also saw a noticeable uptick.
Impact on Cross-Chain Protocols
This conflict may establish a precedent for future acquisitions of cross-chain protocols. Wormhole has requested a pause in proceedings to submit a more competitive bid, which could shift the dynamics of cross-chain interoperability.
The conflict between Wormhole and LayerZero highlights the importance of valuation and governance in cross-chain protocols and may set trends in the cryptocurrency market.
