Zora Labs ditches its governance token model and creates a huge rift between the token's value and its issuer.

The price of Zora has plummeted 55% since it launched six days ago, sending the value of all tokens — both those on the market and yet to be released — to around $150 million.

Traders are ditching onchain social network Zora’s token and creating a huge rift between the token’s value and its issuer.

The price of Zora (ZORA) has plummeted 55% since it launched six days ago, sending the value of all tokens — both those on the market and yet to be released — to around $150 million.

That’s $450 million less than the valuation of Zora Labs, the firm behind the network. Following a fundraising round in 2022, the venture fetched a valuation of $600 million.

The gap between these valuations could spell trouble for venture firms that have backed Zora Labs. Although crypto firms usually clarify that equity and tokens are separate assets, investors, as a matter of practice, often factor token prices into their valuations.

At a minimum, the split in values so