Token

EigenLayer

Security

Coin

<ul class="wp-block-list news-points">
 <li>EIGEN token price fell sharply post-unlock, sparking investor concerns and market volatility.</li>
 <li>A mishandled transfer from a compromised account worsened sentiment around EigenLayer’s unlock.</li>
 <li>Despite the decline, EigenLayer’s growing operator base indicates potential long-term growth.</li>
</ul>
EigenLayer’s token unlock, which happened last week, has led to disputes and price fluctuations, worrying investors. The token’s price has been falling since the unlock, raising questions about what may have gone wrong.
After its initial launch, EIGEN’s price opened at $4 but quickly fell by 20%, trading around $3.30 by the end of the week. The token price decline slowed down between Thursday and Friday, but concerns over the protocol’s airdrop process grew.
Concerns emerged following Friday’s questionable transfer of $5.5 million worth of EIGEN tokens, which some believed broke the token lockup schedule.
EigenLayer <a href="https://research.kaiko.com/insights/market-shrugs-off-longshot-xrp-filing" target="_blank" rel="noopener noreferrer nofollow">clarified</a> that the incident was a security breach. A compromised email account associated with an investor allowed the transfer of over 1.6mn EIGEN tokens to an unauthorized party.
<div class="wp-block-image">
 <figure class="aligncenter size-full"><img decoding="async" width="512" height="274" src="https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360.png" alt="" class="wp-image-523137" srcset="https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360.png 512w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-300x161.png 300w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-380x203.png 380w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-159x85.png 159w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-440x235.png 440w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-414x222.png 414w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-308x165.png 308w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-377x202.png 377w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-123x66.png 123w, https://coinedition.com/wp-content/uploads/2024/10/unnamed-2024-10-08T151044.360-129x69.png 129w" sizes="(max-width: 512px) 100vw, 512px">
 <figcaption class="wp-element-caption">Source: <a href="https://research.kaiko.com/insights/market-shrugs-off-longshot-xrp-filing" target="_blank" rel="noopener noreferrer nofollow">Kaiko</a>
 </figcaption>
 </figure>
</div>
The EigenLayer team said this was an isolated incident, but m…
The post <a href="https://coinedition.com/eigenlayer-token-unlock-hits-snag-price-dips-and-security-concerns/" rel="noopener noreferrer nofollow">EigenLayer Token Unlock Hits Snag: Price Dips and Security Concerns</a> appeared first on <a href="https://coinedition.com" rel="noopener noreferrer nofollow">Coin Edition</a>.

EigenLayer Token Unlock Hits Snag: Price Dips and Security Concerns

Coin Edition

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