EigenLayer Token Issues Leave Community Worried After Recent Hack

Key Points:

• A recent hack on EigenLayer resulted in a $5.5 million loss for a retail investor, but the platform insists its ecosystem remains secure and unaffected.
• Coinlist CEO Raghav Gulati critiques potential risks related to EigenLayer token issues and offers suggestions for better community engagement.

A recent hack involving EigenLayer raises fresh concerns for the cryptocurrency community, as one retail investor lost $5.5 million worth of EIGEN tokens.

Read more: EigenLayer Token Transfer Restrictions Set to End on September 30 

EigenLayer Investigates Hack Amid Concerns Over Transparency

The platform, however, maintained that the platform remained secure and this was an “isolated hack” unrelated to any on-chain vulnerabilities or EigenLayer token issues. The EIGEN team launched a probe, promising to keep those affected updated as it learned more.

The hack happened when EigenLayer faced growing criticism because of its transparency, especially with regard to the staking of tokens and issuance of the EigenLayer token in its treating of the tokens listed on major exchanges.

Coinlist CEO Slams EigenLayer Token Issues

Coinlist CEO Raghav Gulati weighed in on the EigenLayer token issue with a thread on X, giving his two cents on how to pull off a real token. He told the platform how they could have done it.

Gulati also emphasized that fair pre-launch pricing should be equally important to the greater community. Speaking about vesting schedules, he felt that even though team members should continue vesting, sale participants also need to go through vesting. He wondered if investors and partners should be under similar restrictions, continuing an argument he had made earlier against low float and high fully diluted valuations.