LayerZero Airdrop Snapshot: Successful Completion of Cross-Chain Interoperability Protocol
LayerZero, a protocol that enables interoperability between different blockchains, is getting ready to launch its highly anticipated airdrop for users. The first snapshot for the airdrop was completed on May 2, as announced by LayerZero Labs. Airdrops are a common technique used by decentralized finance (DeFi) protocols to attract more users by rewarding them with newly created cryptocurrencies.
LayerZero’s ZRO token was the first Hyperp (Hyperliquid-only perpetual) to be launched on the HyperLiquid decentralized exchange in September 2023. The trading price of ZRO Hyperp is currently around $8.3, giving it a fully diluted valuation of approximately $17 billion, as estimated by Xulian, a core contributor of Hyperiquid.
While LayerZero Labs has not provided any specific details about the upcoming airdrop, it had previously hinted at a token launch in early 2024. The team emphasized their commitment to distributing the LayerZero token correctly and expected it to happen within the first half of 2024.
There are concerns about the long-term impact of airdrops on DeFi protocols. Although airdrops are intended to incentivize early adopters, they often attract professional airdrop hunters who have no intention of using the protocol and instead aim to profit by quickly selling the airdropped tokens in the market.
In February, Banteg, a developer from Yearn.finance, pointed out that Starknet’s airdrop eligibility list was dominated by airdrop squatters. These individuals created multiple cryptocurrency wallets to farm airdrops and then sold the acquired tokens. It was discovered that over half of the eligible wallet addresses for the StarkNet airdrop were associated with airdrop squatters.
Recently, Chinese authorities arrested an identity forger who had assumed the identities of other users to claim over 40,000 STRK tokens from the StarkNet airdrop. The perpetrator converted those tokens into around $91,000 worth of Tether.
Similar incidents have occurred in the past, such as a case in March 2023 where airdrop hunters consolidated $3.3 million worth of tokens from the Arbitrum airdrop into just two wallets that they controlled.
The actions of airdrop squatters contribute to a rapid decline in the value of the newly airdropped tokens, as they sell their accumulated rewards immediately after receiving them.
While airdrops can be an effective strategy to attract users to DeFi protocols, the prevalence of airdrop squatters raises concerns about their long-term impact. Measures need to be put in place to ensure that airdrops reach genuine users who will actively engage with the protocol to foster its growth and development.
13 thoughts on “LayerZero Airdrop Snapshot: Successful Completion of Cross-Chain Interoperability Protocol”
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Airdrops are a flawed system that only benefits those who exploit it for their own gain. It’s not fair to genuine users who would actually use and support the protocol.
Airdrops are becoming more and more of a problem with these airdrop hunters trying to exploit the system. It’s time for developers to find a better way to distribute tokens.
It’s frustrating to see airdrop hunters ruining the value of these tokens . They don’t care about the project, they just want to sell and make a profit.
The actions of airdrop squatters are damaging the reputation of these projects and hindering their growth. Something needs to be done to address this issue.
This airdrop is just going to attract a bunch of greedy people looking to make a quick buck 🤑 without actually using the protocol.
I believe that with the right precautions, airdrops can still be a powerful tool to grow and develop DeFi protocols. 💪 Let’s work together to find solutions and make airdrops more effective! 🌟
I don’t think airdrops are an effective way to attract genuine users. It’s just attracting opportunists who have no intention of actually using the protocol.
I’m glad LayerZero Labs is taking their time to plan the token launch and airdrop properly. ⏰ It’s crucial for the success of the project that everything is done right. 🙏
Selling off airdropped tokens immediately after receiving them is just plain greedy and selfish. It undermines the purpose of the airdrop and hurts the project in the long run.
Wow, I’m really excited about the upcoming airdrop from LayerZero! This is a great way to reward users and attract more people to the platform.
It’s frustrating to see airdrop hunters take advantage of these airdrops and profit off of them without contributing anything to the project.
Airdrops are a flawed concept that only benefits those who are looking to make a quick profit. It’s not fair to genuine users who are actually interested in the project.
Airdrop hunters are just looking to make a quick profit and don’t care about the long-term success of the project. It’s disappointing to see this behavior.