- Recently, Justin Sun has dumped his 5.37M EIGEN tokens.Â
- This sale reportedly provided Justin Sun with around $21.66M.
- Also, his actions have impacted EIGEN’s price.Â
The founder of Tron, Justin Sun, has dumped all his 5.374M EIGEN tokens received from the Eigen airdrop. He received around $21.66M by selling his EIGEN tokens on Binance, according to analytics firm EmberCN.
This sale happened after EigenLayer made their tokens available for trading on popular decentralized exchanges.
The token was added to popular platforms such as Binance and HTX (formerly Huobi). The EIGEN token is crucial in decentralized finance (defi), restaking the EigenLayer protocol.
This decentralized restaking protocol allows users to restake their ETH to earn rewards from various protocols.
Reasons Why Justin Sun Dumped 5.374 Million EIGEN Tokens
This year, Justin Sun received 5.374 million EIGEN tokens from the EigenLayer network. This made SUN the largest single beneficiary of the EIGEN airdrop.Â
Recently, his team reportedly withdrew $21.66 Million from cryptocurrency exchange Binance.
First, he sent the tokens back to the HTX exchange after receiving airdrops. Then, the tokens were moved to Binance for sale.
Justin Sun is an advisory board member at this platform. WuBlockchain said EIGEN tokens were sold off via six addresses connected to Sun.
Justin Sun sold his EIGEN tokens to capitalize on the high initial trading price. He might have aimed to take advantage of the initial market buzz by selling the tokens after they became tradable. The sale of these EIGEN tokens drew attention to the EigenLayer project.
Justin Sun’s Move Affected EIGEN’s Price
This sale occurred very quickly after the tokens were made available for trading. Also, Justin Sun’s actions caused a lot of buzz in the crypto community. This happened due to the large amount of tokens involved in the sale.
The price initially fluctuated when Justin Sun sold his EIGEN tokens on Binance. These tokens were traded at an average price of $4.03 each.
Then, the market displayed resilience despite this large sale. The EIGEN price increased by 7.75% shortly after the sale.
It has reflected a strong market reaction. Large sales like this can cause short-term price drops due to the sudden increase in supply. However, the market’s quick recovery suggests a strong underlying demand for the token.
About EIGEN Token
EIGEN is the native cryptocurrency of the EigenLayer protocol. It is used for ETH restaking as it provides additional security mechanisms for intersubjective faults. Also, EIGEN secures various Actively Validated Services (AVSs) like EigenDA.
Users get rewards for staking their EIGEN tokens within the network for its benefits. EIGEN token holders are responsible for providing liquidity to the ecosystem. Also, its staking helps in enhancing the security of the network.
EIGEN token holders can earn rewards by participating in the EigenLayer ecosystem. Its Programmatic Incentives v1 has allocated around 66.95 million EIGEN tokens in the first year.
4% of the token’s initial circulating supply is allocated for reward distribution. 3% is for ETH and liquid staking token (LST) stakers and operators. The other 1% is for the EIGEN stakeholders.
Token holders registered with at least one AVS. Also, stakers must delegate their tokens to an AVS member operator to be qualified to receive rewards. Users will get weekly rewards every Tuesday at 19:00 UTC.
After the EIGEN token was unlocked for trading, its price was $4.05 per token. Then, it reached an all-time high (ATH) of $4.47. However, by 1:30 p.m. EDT on Oct. 1, its price had dipped 12%.
It was settling at $3.90 per coin. With a circulating supply of 186,582,000 EIGEN, its fully diluted value is $6.57 Billion.
Disclaimer
The information in this article is for informational purposes only. It does not constitute financial or investment advice for the readers. Investing in crypto assets carries the risk of financial loss. Readers should do their own research before making any investment in crypto assets.
