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USDe

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Ethena

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<p class="is-style-lead">Ethena Labs rebutted claims that it unfairly used 180 million of its own tokens to gain rewards from a crypto farming event it hosts.</p>
<p>Crypto investigator Nomad accused synthetic dollar issuer Ethena Labs of participating in its Season 3 farming program with around $61 million worth of (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/ethena/">ENA</a>) coins received from a Coinbase Prime wallet address. According to the web3 sleuth, Ethena team wallets <a href="https://x.com/Nomad02887202/status/1850545195630407892" target="_blank" rel="noopener noreferrer nofollow">staked</a> around 25% of ENA’s total supply during the farming events.&nbsp;</p>
<p>This allegedly allowed insiders to exploit the system and surpass genuine users. Nomad also claimed the tokens were supposed to be locked and non-tradable. The issue follows previous controversy surrounding the protocol’s Season 1 and Season 2 reward initiatives.</p>
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   <p lang="en" dir="ltr">Alert: Important Notice for ENA/USDe Holders<br><br>The Ethena team is currently using 180M ENA tokens (25% of SENA supply that earns sats) to farm sats in Season 3, effectively diluting other participants' rewards. This raises significant concerns about the team's ethics.<br><br>A thread</p>— Nomad (@Nomad02887202) <a href="https://twitter.com/Nomad02887202/status/1850545195630407892?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 27, 2024</a>
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<p>You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/blackrock-and-securitize-back-ethenas-new-stablecoin/"> BlackRock and Securitize back Ethena’s new stablecoin </a></p>
<h2 class="wp-block-heading" id="ethena-labs-response">Ethena Labs’ response</h2>
<p>Ethena Labs released a statement denying the allegations, asserting that the tokens in question were already unlocked in accordance with a publicly disclosed vesting schedule. The protocol refuted insider trading claims and stated that the flagged wallets would be ineligible for rewards or airdrops.</p>
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
 <p>The wallets in question contain unlocked foundation tokens that would fit under the eligible criteria. Nevertheless, the foundation has confirmed to us that these tokens will *<strong>NOT</strong>* be recipients of any airdrop or related rewards from Ethereal.</p>
 <p>Ethena Labs statement</p>
</blockquote>
<p>Nomad’s claims and community skepticism have added to the platform’s contentious history since it launched the stablecoin USDe (<a href="https://crypto.news/price/ethena-usde/" target="_blank" rel="noopener noreferrer nofollow">USDE</a>). Crypto leaders like Andre Cronje expressed doubts over the token’s design and collateral system, which bore similarities to the imploded Terraform coin UST.</p>
<p>Despite a rocky road, USDe has a $2.61 billion market cap and Ethena Labs <a href="https://crypto.news/blackrock-and-securitize-back-ethenas-new-stablecoin/" target="_blank" rel="noopener noreferrer nofollow">secured</a> a stablecoin partnership with Wall Street mammoth BlackRock. The Ethereum-based project also launched a community proposal to <a href="https://crypto.news/ethena-community-to-vote-on-proposal-to-launch-crypto-exchange-on-usde/" target="_blank" rel="noopener noreferrer nofollow">build</a> a crypto exchange built around USDe.</p>
<p>Read more: <a rel="noopener noreferrer nofollow" href="https://crypto.news/will-novembers-rate-cuts-election-push-btc-past-100k/"> BTC dominance nears 60% — Will November’s rate cuts and election push Bitcoin past $100K? </a></p>

Ethena Labs denies misusing 180m ENA tokens

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