Justin Sun
Justin Sun IBTimes US

EigenLayer stirred up the DeFi scene earlier with its new token, EIGEN, an Ethereum-based restaking protocol. Eigen crypto has since rocketed into the top 100 by market cap, with prices soaring to $4.53 soon after its debut.

The frenzy isn't confined to DeFi circles; major exchanges like Binance, Bybit, OKX, and Kraken have picked up the token.

However, not everything is rosy for Eigen. Concerns about centralization rise as Justin Sun and a dozen others control half the project.

Eigen is currently trading at approximately $3.47, reflecting a 2.34%% decrease from its initial offering.

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. Arkham Intelligence reports that Sun scored an $8.75 million airdrop from EigenLayer, which he promptly moved to HTX as the token hit the market.

Spot On Chain reported, "Sun had moved all the EIGEN funds to HTX during the early hours of the Asian trading session."

This move by Sun roughly profited him $22 million, showcasing that he didn't care much about the project's long-term potential.

Heavyweights like Blockchain Capital and Galaxy Digital also received EIGEN airdrops, and their next moves could sway market tides.

The Eigen Foundation plans another token release to widen its ecosystem, promising more buzz and investor interest.

What's All The Hype Behind Eigen?

EigenLayer, launched in early 2021, quickly rose to prominence in DeFi with its cutting-edge restaking concept.

This feature lets Ethereum holders boost yields by staking previously staked tokens on various Ethereum dApps. With a hefty $170 million in funding and a TVL of $11 billion, EigenLayer is a powerhouse in the DeFi arena, offering a novel approach to network security and efficiency.

Eigen's arrival was largely welcomed, as seen in its rapid price rise and active trades. By 2 p.m. on launch day, it neared $1 million in trading volume, showcasing its DeFi potential. As Eigen maneuvers through the crypto market's volatility, its trajectory will be scrutinized for centralization issues.

For now, it seems big investors like Sun sought a quick smash-and-grab, but EigenLayer still holds long-term promise.