EigenLayer Is A Typical VC Scam, Says Ran Neuner

Coingapestaff
April 30, 2024 Updated May 20, 2025
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Ethereum Researcher Justin Drake Quits EigenLayer Advisory Role

Highlights

  • Ran Neuner criticizes EigenLayer, citing early VC involvement and concerns over token distribution.
  • EigenLayer unveils plans for EIGEN token, including allocations for staking and community programs.
  • Reaction within the crypto community is divided, with some questioning fairness while others defend the project's credibility.

Ran Neuner, a prominent figure in the crypto community, has voiced skepticism regarding EigenLayer, characterizing it as a typical VC scam. Neuner identified several warning signs associated with EigenLayer, including the early involvement of venture capitalists (VCs) at low valuations and a high initial market valuation aimed at retail investors.

He also raised concerns about preferential treatment for insiders and VCs in the distribution of tokens. Additionally, Neuner highlighted issues such as restricted access to token airdrops in regions that could benefit from blockchain technology and token lockup periods that disproportionately impact retail investors.

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EigenLayer Unveils Plans for EIGEN Token and Distribution

EigenLayer recently unveiled its plans for the EIGEN token through the release of its Whitepaper, sparking anticipation in the crypto ecosystem. The protocol outlined the role of the EIGEN token as a central component of the EigenLayer ecosystem, with multiple use cases.

EigenLayer intends to introduce a total token supply of 1.67 billion, allocating portions for staking airdrops, community programs, ecosystem development, and investor distributions. Notably, early contributors will receive a significant share of the token supply, subject to a mandatory three-year lockup period.

Also Read: Cardano Whale Transactions Explode Hinting At ADA Price Reversal In Short Term

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Reaction and Analysis within the Crypto Community

Ran Neuner’s remarks about EigenLayer have ignited discussions within the crypto community, prompting varying reactions. Some individuals echo Neuner’s concerns, questioning EigenLayer’s token distribution model and its potential impact on retail investors. Critics argue that the project’s structure may unfairly advantage insiders and early contributors.

In contrast, supporters of EigenLayer highlight its innovative features and the credibility of its VC backers. They suggest that criticisms leveled against the project may be premature or exaggerated. Overall, the discourse surrounding EigenLayer underscores broader issues of transparency, fairness, and trust within the crypto ecosystem, emphasizing the importance of thorough due diligence for investors.

Also Read: Hong Kong’s Crypto ETFs Signal Gateway For Chinese Investors

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.