LayerZero is an omnichain interoperability protocol designed for lightweight message passing across chains. LayerZero provides authentic and guaranteed message delivery with configurable trustlessness.
It is one of the most popular crypto projects for 2023, attracting the most attention among airdrops farmers as well as thosw who want to bridge to web 3 from web 2.
But It seems that the highly anticipated launch of $ZRO launch has hit a roadblock, leading to concerns over impending financial losses.
The Fud
Originally it started from the Token2049 event which was held in singapore where a member of LayerZero team stated that there won't be an airdrop. LayerZero saw a huge setback when the transaction volume reduced.
But later, Bryanm the founder of LayerZero Labs, confirmed in the comments that the video had been edited by owner, answer was in a different context. You can see the tweet here...
We can see the stats on DuneAnalytics & some other platforms that daily activity had reached its peak at the end of July. Since then, number of daily transactions has decreased by half. Also only 56.1% of wallets remained active for one month.
Recently FTX had also filed a lawsuit against LayerZero saying that they knew about AlamedaResearch liquidity crisis and demanded immediate repayment of a $45M loan they had made. The lawsuit stated that LayerZero withdrew tokens worth $21.7M before the FTX was closed. Furthermore it seems that Alameda obtained a stake of $70M in LayerZero through warrants to purchase $STG and $ZRO tokens, among other assets.
You can read more from this tweet....
As for AlmedaResearch crisis, You can read more from wikipedia....
So It is ended?
Probably not! Just when this whole controversy was on going, LayerZero announced their partnership with the Google Cloud.
With this collaboration, Google Cloud Oracle will verify the validity of every message sent through LayerZero as mentioned in the tweet...
Apart from this, The ecosystem is extremely large with new projects boarding onto it...
It has over:
• 49+ DeFi projects
• 12+ bridges
• 14+ DEXs
and much more.......
(You can find the whole compiled list in this thread)
But here, It seems like the community was affected!!
Since the arbitrum airdrop, where each airdrop participant received almost $5000, its been popular that More the accounts, the more the income!
People tend to use the automated softwares for hunting cause managing e.g. 50 accounts would require a hug work....
This has lead a lot of wallets to get inactive or just move out of it!
Recently they have also partnered with Conflux which I have already mentioned out here....
Conclusion
As of now, Nothing seems clearer!! Firstly, the L0 is partnering with biggest firms in the world and on the other hand, it is accused of fraud...
We never know the next move: It will either be down to zero or rise as a hero...
As for Airdrop Hunters, Spending Your life savings on it is worthless (Might be worth it but why take the risk......
