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LayerZero Protocol Completes First Airdrop Snapshot for ZRO Token
In a significant milestone towards the launch of its native token, ZRO, LayerZero, a cross-chain interoperability protocol, successfully conducted its first airdrop snapshot on May 1. This snapshot signifies a crucial phase in the protocol’s development and has sparked excitement within the DeFi community.
Confirmation by LayerZero Labs
LayerZero Labs officially confirmed the completion of the airdrop snapshot through a post on May 2. The snapshot will play a key role in determining the distribution of ZRO tokens to eligible participants upon the token’s official launch, scheduled for the first half of 2024.
Anticipation for ZRO Token Launch
The announcement of the upcoming ZRO token launch has already generated anticipation, especially on decentralized exchanges. Notably, on Hyperliquid, the world’s largest perps DEX, a perpetual futures contract for ZRO is currently trading at $8.4, indicating a fully diluted valuation of around $17 billion for the forthcoming token.
Potential Implications of the LayerZero Airdrop
While the LayerZero airdrop brings opportunities for the protocol and its community, there are concerns regarding the impact of Sybil users. These users exploit airdrops by claiming rewards with multiple cryptocurrency wallets solely for the purpose of selling them, without any genuine interest in engaging with the protocol. This behavior can lead to a significant drop in the price of the airdropped token post-launch.
Historically, past airdrops have faced challenges due to airdrop hunters. For instance, in February, it was discovered that a large portion of Starknet’s airdrop eligibility list consisted of Sybil users, with over 701,544 addresses out of 1.3 million linked to such activity. Similarly, in March 2023, airdrop hunters using 1,496 wallets accumulated over $3.3 million worth of tokens from the Arbitrum (ARB) airdrop, contributing to a subsequent decline in token price.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
