Learn about EigenLayer's unique token distribution, current struggles of the new Bitcoin ETF, and Sun's WBTC depeg issues.
EigenLayer Unveils Token and Airdrop Plans

EigenLayer Unveils Token and Airdrop Plans

Learn about EigenLayer's unique token distribution, current struggles of the new Bitcoin ETF, and Sun's WBTC depeg issues.

May 1, 2024
| Issue

Welcome to another edition of Datawallet Daily. Here are the key stories that are shaping the crypto landscape over the last 24 hours:

EigenLayer Unveils Token and Airdrop Plans

Ethereum restaking protocol EigenLayer recently disclosed details about its forthcoming EIGEN token stakedrop, set for May. The stakedrop will allocate 5% of the total token supply to users who participated in staking activities as of March 15. Participants are eligible if they staked directly with EigenLayer or utilized liquid restaking protocols. 

Furthermore, the stakedrop incorporates strict geographical restrictions, excluding users from the US, Canada, China, and other specified regions using IP blocks and VPN detection systems to enforce the policy. This initial 5% distribution represents the first phase of a broader plan to release 15% of the total EIGEN supply across future phases. The initial tokens will be non-transferable. Further eligibility criteria for upcoming distributions are yet to be defined.

Hong Kong Bitcoin and Ether ETFs Struggle on First Day

The launch of the first spot Bitcoin and Ethereum ETFs in Hong Kong experienced subdued trading volumes compared to their U.S. counterparts. On their debut day, the combined volume reached only $12 million, a stark contrast to the U.S. figures from January 2024. Managed by companies like China Asset Management, Harvest Global, Bosera, and HashKey, these six new crypto ETFs saw varied performances, with some funds attracting significantly more interest than others.

Local fund managers and brokerages have responded by offering fee waivers to attract investors. Additionally, these ETFs might become accessible to mainland Chinese investors, although stringent KYC policies could pose challenges.

WBTC Depeg Raises Concerns for Justin Sun’s Crypto Empire

The Poloniex exchange, owned by Justin Sun, faces scrutiny as its wrapped bitcoin (WBTC) product on Tron is trading at a notable 20% discount, raising concerns about the transparency and safety of the cryptocurrency. Despite repeated inquiries, Poloniex has not disclosed where its Bitcoin reserves are kept and has not completed a promised proof-of-reserves. 

This issue is critical as a significant portion of the Bitcoin held by HTX (formerly Huobi) comprises Poloniex’s WBTC product. Connections between Poloniex, HTX, and other Sun-affiliated entities like JustLend – which holds a substantial amount of this WBTC – further complicate the situation. This scenario jeopardizes the credibility of these platforms and poses a threat to Justin Sun’s crypto enterprises.

Heroglyphs Aims to Enhance Ether with Solo Validator Rewards

Heroglyphs, introduced by 0xMaki, a co-founder of SushiSwap, is a new protocol designed to boost the number of solo Ethereum validators, enhancing ETH’s robustness and decentralization. This protocol is especially geared towards encouraging solo validators by enabling them to encode valuable data, like token creation, into proposed blocks—akin to Bitcoin’s inscription model, but exclusive to solo validators.

By potentially turning solo validating into a lucrative activity, Heroglyphs aims to decentralize Ethereum’s PoS validation further away from dominant LST protocols, thus mitigating centralization risks and fostering client diversity. 

Other breaking news

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