EigenLayer's native token, EIGEN, experienced a significant price drop of 20% shortly after its listing on Binance and other major exchanges. Initially, there was excitement surrounding the listing, but this quickly shifted due to growing concerns over transparency within the project.
This decline in value has raised uncertainty among both new and existing investors regarding the token's potential growth.
EigenLayer had previously garnered attention before the listing, but the narrative changed post-launch. Eigen Labs, the developers behind the network, faced criticism for their lack of transparency, particularly concerning the staking mechanisms of the token.
Typically, tokens issued to investors are locked up to prevent a pump-and-dump scheme, and are gradually unlocked over time. However, the unclear communication surrounding these processes appears to have negatively impacted market sentiment.
