A conflict has emerged in the cryptocurrency industry between Wormhole and LayerZero over the bidding for the crypto protocol Stargate. Wormhole believes LayerZero's offer is not compelling.
Wormhole's Proposal
The Wormhole Foundation posted on Stargate’s forum expressing its intention to submit a higher bid for the acquisition of Stargate. The organization stated that LayerZero's initial bid of $110 million does not reflect the true value of the business, calling it 'an unappealing offer.' In its statement, Wormhole emphasized its readiness to propose a more competitive price.
LayerZero's Updates
Following criticism of its initial proposal, LayerZero updated its offer to include a revenue-sharing period for Stargate token holders. The new proposal allows for half of Stargate’s revenue to be distributed to stakers for six months, which has garnered significant support from the Stargate community. In contrast, the initial plan would have allocated excess revenue for a LayerZero token buyback.
Market and Tokens
Against the backdrop of this conflict, tokens associated with all three projects have seen gains. The Wormhole token rose by 6.3% in the 24 hours, reaching just over 8 cents. Similarly, Stargate's token increased by 6% over the same period, while LayerZero's token showed a modest gain of 3.6%. These developments occurred amid a general uptick in the cryptocurrency market, with Bitcoin and Ethereum also exhibiting positive trends.
The ongoing rivalry for Stargate between Wormhole and LayerZero highlights the dynamic nature of the crypto industry. Both parties continue to enhance their bids, drawing the attention of the community and investors.
