Coinspeaker
LayerZero (ZRO) Price Stability Linked to These Factors
LayerZero Labs’ CEO Bryan Pellegrino has attributed the success of the project’s native token ZRO to two factors. He hinted at the aggressive combination of Sybil filtering and laser focus on prioritizing developers and “durable” users. He claimed that since the token airdrop on June 20, 2024, the ZRO price has remained steady.
During this time, it has even performed better than tokens of some competing Ethereum Layer 2 networks, zkSync (ZK) and Starknet (STRK), which were airdropped around the same time. Meanwhile, ZRO token holders got the privilege of voting on the LayerZero protocol’s fee switch, with an immutable voting contract enforcing a public on-chain referendum every six months.
LayerZero Introduces “big Sybil hunt” to Curtail Token Farming
At the Korea Blockchain Week, Pellegrino noted that LayerZero did many “very unique” things with its airdrop. One notable achievement was the introduction of a “big Sybil hunt”, which helped to block bots and excessive farming. The challenge of excessive farming is a core concern for many projects that embark on token distribution.
Some crypto enthusiasts usually devise means to excessively farm the tokens, preventing it from reaching real project users. However, with the “big Sybil hunt”, LayerZero was able to put its token in the hands of the network’s most dedicated users. The project’s CEO highlighted that the top priority of any team taking on an airdrop is to bridge the gap between expectations and reality.
In his opinion, LayerZero invested resources and manpower to achieve this balance. According to Pellegrino, the protocol’s introduction of the Sybil hunt did not come without some hesitation from its community members. As soon as the community recognized the effort and goal (to give real users higher allocation), they became more receptive.
According to CoinGecko, when ZRO first hit the market almost three months ago, it had a price tag of $4.4. Currently, it has recorded only a 23% price dip from launch. Considering how the project received intense backlash from its community for implementing a mandatory donation for users who wanted to claim their airdropped tokens, the price level is still encouraging.
Starknet Face Community Backlash
On the other hand, the STRK token was airdropped to 1.3 million wallets on February 20 at an opening market price of $5. The price level reflected both anticipation and the perceived value within the Starknet ecosystem. At the time, primary market-making players, like Amber Group, Wintermute, and Flow Traders, made substantial investments.
This capital injection reinforced the token’s credibility and market potential. Similarly, the community injected liquidity and momentum into Ethereum Layer 2 Starknet.
Sadly, there were claims that Starknet over-prioritized insiders at the expense of legitimate network users. Starknet was also accused of exposing its users to massive “airdrop squatters”. These claims ended up tarnishing the token’s outlook.
