- Ran Neuner criticized EigenLayer as a potential “VC scam.”
- EigenLayer’s Whitepaper reveals allocations for airdrops, community initiatives, ecosystem development, and initial investors.
- Despite recent protocol updates, Neuner remains skeptical.
Ran Neuner, host of CNBC’s “Crypto Trader” and founder of Crypto Banter, recently criticized the Ethereum-based Liquid re-staking protocol EigenLayer, labeling it a potential “VC scam.” Neuner made his stance known through an X post, stating that the project is “a scheme where VC insiders fleece retail investors again.”
Neuner’s statements followed Eigen’s launch of its Whitepaper on April 29. The re-staking protocol revealed plans to issue 1.67 billion EIGEN tokens. Per its whitepaper, Eigen will distribute 15% of the tokens for airdrops and allocate another 15% for community initiatives. In addition, it targets 15% for ecosystem development and 29.5% for the initial token investors.
The protocol also disclosed that it would reward early contributors with 25.5% of the total token supply. These tokens, however, will be locked up for three years. The lockup includes a complete freeze in the first year, followed by a gradual release over the subsequent two years at a rate of 4% per month.
Furthermore, Eigen Labs recently announced key updates to its EigenLayer protocol, including removing all caps on its Liquid Staking Token (LST) and resuming re-staking deposits.
Alongside these developments, EigenLayer is preparing to launch an Airdrop collection page on May 10. The protocol announced that the campaign would be managed by a newly established independent nonprofit foundation responsible for distributing the native token.
However, the project has not escaped criticism from Neuner, who has voiced concerns about the distribution strategy and structure. He stressed that venture capitalists benefit from early access at low valuations, while retail investors face a high fully diluted valuation (FDV) with initially low circulation.
Neuner also highlighted the disadvantages for retail investors, such as lack of access to insider information, regional restrictions on the airdrop, and controlled token lockups. Given these factors, he opined, “Any retail investor that buys this in the first 3 years will be punished.”
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