EtherFi Airdrop Sparks Controversy In Crypto Community

The EtherFi airdrop proposition has sparked controversies among investors because of the uneven distribution of the token. On the 16th of March, EtherFi revealed the plans for the first phase, where 6% of the total token supply will be released. The second phase will cover another 5% of tokens in airdrop.

So what’s the trouble? Let’s discuss that in this blog.

What is EtherFi?

EtherFi is a platform that allows decentralized liquid staking options where the users can stake ETH to receive rewards and help out Nord operators. The decentralized tag is related to the fact that the stakes get to control their keys and retain custody of their stakings. Not only this but for every validator launched here, an NFT is minted.

It has its native token called ETHFI, which is currently trading at $3.04 with a market cap of  $348,892,485. The ETHFI token has faced a sharp drop in its prices. Earlier, it was trading at somewhere around the $4 mark but has dropped by 26% after the airdrop. It is launched with an initial supply of 115,200,000 ETHFI only, whereas 1 Billion is the total supply.

Controversy Overtakes EtherFi Airdrop

EtherFi airdrop has just gone live, where 6% of the total supply of 1 Billion tokens will be distributed. The EtherFi team has set some tough criteria to get eligible for this airdrop such as you have to be an early adopter of the platform, you should be holding ether.fan NFT, you should be ether.fi solo staker, be a part of referrals, and much more.

Also Read: Best Airdrops to Invest In

Among this long list of rules to be eligible for airdrop, the top 500 wallets will receive 85% of the total airdrop. The remaining 15% is for the 70,000 wallets. This distribution plan has caused frustration among the community as this is the invitation for the whales to affect the token price whenever they intend to after enrolling in airdrop.

Justin Sun, the TRON network founder, is allotted 6% (3.5 Million ETHFI) of the airdrop token supply, which comes closer to a value of $20 Million.

Justin Sun’s wallet got nearly 6% of the $ETHFI airdrop supply, nearly $20M

Top 500 wallets have about 85% total

Linear distribution advocates, remind me again how this is a good solution? pic.twitter.com/WgLWl9ipSy

— Blur (@BlurCrypto) March 16, 2024

It wasn’t the first time for Justin to get involved with airdrop-related issues. Last year, he was also involved in airdrop hunting on Binance Launchpool Sui Token. At that time, Justin received 56,100,000 TUSD tokens worth $56,44,45. The Binance exchange took severe measures to deal with that.

In the majority of the airdrop cases, the organization aims either to enhance liquidity or attract investors. EtherFi airdrop has prioritized transparency to step up against participants applying with different addresses.

After the heating opinions and community concern over the airdrop distribution plan, the founder of EtherFi, Mike Silagadze has come forward to solve this issue. He promised to make necessary changes before the token distribution.

Conclusion

The EtherFi airdrop is set to happen differently than the rest. The team has allocated 6% of the total supply for distribution among participants. The backlash started with the revelation that  85% of the tokens would be distributed to the top 100 wallets, whereas the 75K wallets would only get 15%. It built a loose string in the market, leading to many unhappy investors. After the backlash, the EtherFi founder has promised to work on it.

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