ZRO Token Price Falls 24% After LayerZero Airdrop Controversy!

Bittime - Debate emerged following the launch of LayerZero's ZRO token. Instead of being greeted with joy, the price of the ZRO token actually fell 24% in the first 24 hours after launch. The cause? Controversial token distribution scheme.

Different from airdrops in general which are distributed free of charge, LayerZero requires its users to "donate". Users must deposit 10 US cents (around Rp. 1,645) in the form of USDC or USDT stablecoins. 

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This is done for every ZRO token they claim. The donation was allocated to Protocol Guild, an Ethereum developer forum.

Proof of Donation Aims to Prevent Bots

LayerZero claims that this "Proof of Donation" scheme aims to ward off bots and fictitious entities (Sybil entities) who often 'hunt' airdrops for personal gain. However, this step actually drew harsh criticism from the crypto community. Many think this scheme is not an airdrop but a "disguised tax."

Also read: LayerZero Launches LayerZero Roles, Rewards According to Community Roles

"Because the tokens were obtained through donations, this is technically not an airdrop," said a crypto trader with the handle @dcfgod. "The LayerZero development team never called it an airdrop in their communications."

LayerZero itself is adamant that this token distribution method aligns with their protocol vision and long-term commitment to the future of crypto. 

They even promised to match donations of up to $10 million (around IDR 164.5 billion) raised to the Protocol Guild, as well as support Layer 1 developers on the Ethereum network.

This controversy has a direct impact on the price of ZRO. As of Friday, the price of ZRO fell 23.9% to $3.38 (around IDR 55,500) per token. 

Compared with its highest price, $4.79 (around Rp. 78,400) which occurred the day before, ZRO has fallen almost 30%. ZRO's market capitalization is currently around $ 845 million (around IDR 13.8 trillion).

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Will ZRO be able to recover and return to its highest price? We'll see how it develops later. What is certain is that the launch of ZRO is a valuable lesson that transparency and fair distribution schemes play an important role in the crypto ecosystem.

Also read: LayerZero Airdrop: Everything You Need to Know

Get to know LayerZero: The Blockchain Connecting Bridge

LayerZero is here as a solution to liquidity fragmentation. This means that activity on each blockchain is isolated within its own ecosystem. This certainly makes it difficult for crypto users, because they are trapped in a particular blockchain and cannot easily access applications on other blockchains.

LayerZero is an interoperability protocol created to connect different blockchains. With Relayer and Oracle models, LayerZero is able to accurately validate cross-blockchain transactions.

So far, LayerZero has succeeded in attracting the attention of many well-known investors, such as a16z, Sequoia, Tiger Global, Coinbase Ventures, and many more. The LayerZero development team successfully raised $120 million in funding at a $3 billion valuation. 

This is certainly proof of LayerZero's bright prospects and attracts the interest of many parties to partner. Currently, LayerZero has collaborated with leading crypto protocols such as Uniswap, TraderJoe, Radiant Capital, and others.

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This controversial launch of the ZRO token may have you wondering, will LayerZero hold a token airdrop in the future? Like most other decentralized protocols, the potential for a ZRO token airdrop does exist. However, there is no official information regarding this.

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To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn Complete Guide How to Buy Crypto on Bittime. 

Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

Also read:

LayerZero Airdrop: Everything You Need to Know

Crowded! Binance and Upbit Officially List LayerZero (ZRO)

LayerZero (ZRO) Starting June 20 Listing on the OKEx Exchange

LayerZero Airdrop Claims Have Been Opened, Must Donate Before Claiming!

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.