Resilient Manta Network Bounces Back after Token Listing Challenges

Manta Network, a layer-2 blockchain powered by zero-knowledge proof technology, experienced some unexpected challenges during its billion-dollar token listing earlier this month. The network fell victim to a distributed denial-of-service (DDoS) attack on January 18, which temporarily paralyzed the network with 135 million remote procedure call (RPC) requests. The transfer of 2 million MANTA tokens to a Korean business development representative’s personal wallet raised speculation among investors. Manta clarified that this transfer was simply an initial investment support for its decentralized finance (DeFi) project, LayerBank.

Despite these setbacks, the network has largely recovered and currently has a fully diluted market cap of $3.1 billion. In an interview with Cointelegraph, Kenny Li, the co-founder of p0x labs, the creator of Manta Network, stated that the protocol’s profit margins have significantly improved using its layer-2 technology. Li mentioned that the network has saved users approximately 1 million in the past month. Going forward, the team aims to strike a balance between transaction volume and revenue.

As the network grows, p0x labs plans to provide ecosystem grants to projects with a strong track record, such as Zero Lend, which has exceeded a total value locked of $19 million shortly after its launch. Li emphasized the importance of collaborating with projects that have already proven themselves in the space. In terms of this year’s budget and roadmap, the team will focus on business development in Korea, where LayerBank and Shoebill, two projects within the Manta ecosystem, have achieved a total value locked of more than $350 million.

Unfortunately, the project had to abandon certain goals, including its original plan to explore the privacy aspect of zero-knowledge technology, due to a lack of regulatory clarity in the United States. According to Li, striking a balance between regulatory clarity and creating a scalable user experience has been a challenge. As a result, the network has shifted its focus to zero-knowledge enabled decentralized applications, such as an on-chain poker platform and decentralized identity solutions.

Currently, Manta Network boasts a combined total value locked of $428 million. The project previously raised $25 million in a Series A funding round on July 19, 2023, with a valuation of $500 million. The funding round was led by Polychain Capital and Qiming Venture Partners.