CDS Crypto News Ethena Token Launches on Exchanges Today Amid Claims of Airdrop
Crypto News

Ethena Token Launches on Exchanges Today Amid Claims of Airdrop

Ethena has established a claim page for its governance token airdrop.

Ethena Token Launches on Exchanges Today Amid Claims of Airdrop

Crypto News– The synthetic dollar project Ethena has initiated the claim process for its governance token (ENA) airdrop, distributing 750 million tokens, constituting 5% of its total supply of 15 billion, to eligible users.

Ethena Token Launches on Exchanges Today Amid Claims of Airdrop

The project has announced that the token will commence trading on various centralized exchanges starting at 4:00 a.m. EST.

This airdrop follows the shard campaign, a reward initiative for early participants allowing user engagement through referral links, granting them shards (or points) as rewards. The number of tokens each user receives is determined by the total shards accumulated by April 1.

Ethena Labs, the development firm behind the project, supports the USDe stablecoin, also known as an Internet Bond and a synthetic dollar.

In February, Ethena secured $14 million in a strategic funding round, valuing the project at $300 million. The round was co-led by Dragonfly and Maelstrom, the family office of BitMEX founder Arthur Hayes.

Unlike traditional stablecoins, USDe implements a distinctive mechanism that doesn’t rely on direct fiat or asset backing. Instead, it utilizes methods such as hedging derivative positions against collateral held by the protocol and an arbitrage system for minting and redeeming USDe, with the aim of maintaining its peg to the US dollar.

In simpler terms, it employs strategies like shorting ether futures while simultaneously earning yield by staking with Ethereum validators. This generates a yield for the protocol, which is then shared with stablecoin holders.

Blockchain Analyst Raises Concerns Over Unacknowledged ‘Critical Flaws’ in Ethena

Ethena’s decentralized protocol has recently found itself under the microscope within the blockchain community. Tardfiwhale, an enigmatic figure known for delving deep into blockchain projects, has purportedly unearthed what he describes as critical flaws embedded within the infrastructure supporting Ethena. This revelation comes at a time when Ethena has already issued a substantial amount, exceeding $1.5 billion, of USDE, a synthetic dollar stablecoin.

Since March 15th, Tardfiwhale has been vocal about these alleged flaws, warning that they could potentially lead to substantial financial losses for users due to the current operational setup of the protocol. Notably, Tardfiwhale has a track record of accurately predicting the downfall of projects such as LUNA and UST, as well as raising red flags about possible bank runs involving the OHM platform.

Despite his concerns, Tardfiwhale has opted not to disclose the specifics of these issues without compensation. He is requesting donations to be directed to third parties following the revelation and verification of these flaws. Initially, he set a donation target of $500,000, with fifty percent earmarked for the Protocol Guild, a consortium of Ethereum developers. The remaining funds would be divided between Zachxbt, another prominent crypto researcher, and the legal defense fund for developers associated with Tornado Cash, who are currently embroiled in legal proceedings related to money laundering allegations.

On March 18th, Tardfiwhale significantly escalated the bounty to $1 million, intensifying his pursuit of resolution. This move, marked by a substantial increase in the reward, underscores the heightened importance placed on uncovering the truth. Notably, Tardfiwhale opted to maintain the same distribution proportions for the recipients of these donations, a decision reflective of his commitment to fairness and transparency in the process.

Offering insight into his rationale, Tardfiwhale pointed to the involvement of Maker and Mantle in Ethena. These prominent protocols are poised to inject substantial sums, amounting to hundreds of millions, into Ethena. The magnitude of this investment, coupled with the potential risks associated with undisclosed flaws, underscores the urgency and significance of addressing these concerns promptly and thoroughly.

Tardfiwhale made it clear that his primary aim in exposing these vulnerabilities is to prevent any potential catastrophic events within the crypto community. He stressed that there is no personal gain to be had from disclosing these flaws, reiterating his commitment to transparency and the greater good of the industry. His actions reflect a sense of responsibility and altruism, driven by a desire to ensure that all participants in the crypto ecosystem are well-informed and equipped to navigate any challenges that may arise.

Ethena Token Launches on Exchanges Today Amid Claims of Airdrop

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