Key takeaways
- 1.67 million EIGEN tokens sold through MetaMask may violate EigenLayer blocking policy.
- Questions arise about internal oversight as the EigenLayer team wallet is linked to unauthorized token sales.
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own layer, announced an investigation into an unauthorized sale of 1.67 million EIGEN tokens, allegedly dumped through MetaMask at around $3.3 each.
Community Update
We are investigating unapproved selling activity associated with this wallet: (https://t.co/Pp9KoTfACp).
We will share our findings with the community as soon as possible.
– Own layer (@capaeigen) October 4, 2024
The transaction, which may have violated EigenLayer's strict one-year lockup schedule for employees and early investors, has raised questions about the security of the tokens and internal compliance.
Arkham Intelligence identified the suspicious sale, which involved an EigenLayer multi-signature Gnosis Safe-funded wallet. According According to blockchain analytics firm Lookonchain, the tokens were transferred from an EigenLayer team wallet before being sold through MetaMask, raising concerns about internal oversight and security of the tokens.
According to the protocol's blocking policy, current and former employees, as well as early investors, are not allowed to sell or stake EIGEN tokens received from Eigen Labs until September 2025.
After that, only 4% of each recipient's tokens will be unlocked monthly, with full vesting set for September 2027. The sale appears to have contravened these guidelines, as EIGEN tokens were only airdropped at starting May 10, 2024, leaving the wallet under the initial name. One year confinement.
EigenLayer unlocked its token on October 1, propelling it into the top 100 tokens by market cap, with a fully diluted valuation of $7.2 billion. Currently trading at $3.59, the token launch generated significant interest. However, the unusual selling activity has since sparked an internal debate within the EigenLayer team over token distribution and security protocols.
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