- In a significant move towards the launch of its native token, ZRO, LayerZero, a cross-chain interoperability protocol, has successfully completed its first airdrop snapshot on May 1.
- LayerZero Labs confirmed the completion of the airdrop snapshot, which will determine the allocation of ZRO tokens to eligible participants upon the official launch, expected to occur in the first half of 2024.
- However, the LayerZero airdrop raises concerns about the potential impact of Sybil users, who claim airdrops with multiple cryptocurrency wallets solely to sell the rewards without any intention of long-term engagement with the protocol.
LayerZero completes airdrop snapshot for its native token, ZRO, amid anticipation and concerns about potential impact of Sybil users.
LayerZero Airdrop Snapshot: A Major Step Towards ZRO Token Launch
LayerZero, a cross-chain interoperability protocol, has successfully completed its first airdrop snapshot on May 1, marking a significant step towards the launch of its native token, ZRO. The snapshot will determine the allocation of ZRO tokens to eligible participants upon the official launch, which is expected to occur in the first half of 2024.
Anticipation and Valuation of ZRO Token
Anticipation for the ZRO token launch is already evident, particularly on decentralized exchanges. On Hyperliquid, the world’s largest perps DEX, a perpetual futures contract for ZRO is currently trading at $8.4. This suggests a fully diluted valuation of approximately $17 billion for the forthcoming token.
Potential Implications of the LayerZero Airdrop
While the LayerZero airdrop presents an exciting opportunity for the protocol and its community, it raises concerns about the potential impact of Sybil users. These individuals claim airdrops with multiple cryptocurrency wallets solely to sell the rewards without any intention of long-term engagement with the protocol. This practice can lead to a sharp decline in the price of the newly airdropped token following its launch.
Previous Instances of Sybil User Impact
Several past airdrops have been affected by airdrop hunters. In February, it was revealed that the eligibility list for Starknet’s airdrop was predominantly composed of Sybil users, with 701,544 addresses out of 1.3 million linked to their activity. Similarly, in March 2023, 1,496 wallets belonging to airdrop hunters accumulated over $3.3 million worth of tokens from the Arbitrum (ARB) airdrop, contributing to a subsequent price decline.
Conclusion
The successful completion of the airdrop snapshot marks a crucial stage in LayerZero’s journey towards launching its native token, ZRO. However, the potential impact of Sybil users on the token’s price stability post-launch remains a concern. As the crypto community awaits the official launch of ZRO, it will be interesting to see how LayerZero addresses these challenges.
