Justin Sun: Is Eigen Crypto a Cabal Coin?

Crypto mogul Justin Sun, the brain behind TRON has been a notable backer of Eigen for months now.

Cryptocurrency project Eigen (EIGEN) saw a centralized launch on Thursday, sparking concerns among some in the Web3 community.

The project’s token hit centralized exchanges like Binance, FTX and MEXC at around 2 A.M. UTC. According to data from crypto analytics firm Arkham Intelligence, Justin Sun — the founder of Tron (TRX) — received an airdrop of $8.75 million in EIGEN.

Arham Intelligence noted that Sun moved the tokens to FTX as soon as EIGEN began trading on the exchange. Crypto analytics firm Spot On Chain also highlighted Sun's movements.

“Justin Sun had moved all the EIGEN funds to HTX during the early hours of the Asian trading session,” wrote Spot On Chain in a recent analysis.

Sun’s tokens were valued at around $22 million at the time of his reported actions, suggesting that he may have been prioritizing a quick profit over the project’s long-term success.

Other crypto heavyweights also received substantial EIGEN airdrops, including Blockchain Capital and Galaxy Digital, whose next actions could significantly impact the token’s price. Meanwhile, the Eigen Foundation is reportedly planning another round of token releases to further expand its ecosystem.

What is Eigen? A Quick Overview

EigenLayer, which was launched in early 2021, quickly gained attention in the decentralized finance (DeFi) sector thanks to its restaking concept.

This feature allows users to boost their yields by staking tokens that have already been staked on multiple Ethereum dApps. Notably, the project had secured $170 million in funding and boasted a total value locked (TVL) of $11 billion.

As a novel approach to network security and efficiency, EigenLayer’s restaking concept and role in the broader DeFi landscape were key factors in its successful launch.

Upon its arrival on centralized exchanges, Eigen saw a rapid increase in price and active trades. By 2 p.M. on launch day, the project had attained nearly $1 million in trading volume on centralized exchanges.

As Eigen continues to navigate the volatile crypto market, the project’s trajectory will be closely monitored, especially in terms of centralization issues. While some large investors may be prioritizing quick profits, EigenLayer still holds promise for the long term.