WOO X Research, the analysis team of the global centralized crypto futures and spot trading platform WOO X, projects that the value of cross-chain interoperability protocol LayerZero's upcoming token issuance and airdrop could reach somewhere between 600 million and as high as $1 billion. In providing the valuations, WOO X Research analyzed LayerZero's historical financing rounds, assumptions on the token allocation and circulation, and user engagement from the witch hunt event.
Conservative outlook: With a Token Generation Event (TGE) multiple over the last round valuation of 4x and an initial circulation of 15%, Layerzero's projected TGE market capitalization is estimated at $1.8 billion, with an FDV of $12 billion. The airdrop value is predicted to be $600 million, translating to a value per user ranging between $750 - $1,500.
Optimistic outlook: Assuming a TGE multiple over the last round valuation of 4.5x and an initial circulation of 20%, Layerzero's projected TGE market cap increases to $2.7 billion, with a valuation of $13.5 billion. The airdrop value under this scenario is expected to rise to $1.08 billion, resulting in a value per user averaging between $1,350 - $2,700.
Overall, the strong financing trajectories, significant investor backing, strategic token allocation strategies, community engagement efforts, and comparative analysis with similar projects such as Wormhole and Axelar influence the assumptions on Layerzero’s future growth. These factors collectively suggest optimistic projections for their market performance and valuation.
Sybil hunt continues, total addresses ruled ineligible to hit 1 million
Meanwhile, George Heath from WOOFi Growth sees LayerZero’s airdrop as a first-of-its-kind for DeFi, with Bryan Pellegrino taking extraordinary measures to filter out industrial and mercenary airdrop farming operations.
“Between self-reporting and on-chain analysis conducted by LayerZero, Chaos Labs, and Nansen - a total of 803,093 addresses have been marked as sybils (~13% of the total 6m addresses that have ever interacted with LayerZero). There are still more sybils yet to be caught too, and I expect another 200,000 when the results of the sybil bounty hunting phase are revealed. Bryan seems determined to put LayerZero’s token in the hands of real, genuine users, which makes me think this could be one of DeFi’s most rewarding airdrops yet,” said George Heath, WOOFi Growth.
Taking a different stance is CC2 Ventures, a Twitter popular account that is known for sharing educational content on how to qualify for airdrops and often used tools and methods that might be flagged as ineligible by Sybil detection systems. At the time, CC2 Ventures was very outspoken in his criticism, pointing out that LayerZero welcomed all users at the time, as it helped inflate key adoption statistics that propelled the protocol to such staggering valuation.
Speaking to WOO X Research, CC2 Ventures' tone has softened, in light of recent developments. “Taking a more neutral stance as it's too early to tell if LayerZero 'turns the ship' around and executes it well… it's too early to tell. They have changed their trajectory and the vibes are improving. I still believe the public Sybil Hunt was unnecessary given other high-profile projects such as Wormhole and Arbitrum didn't need it. Arbitrum wallet count was 3 million, LayerZero had 6 million, but applying a few baseline filters would've already excluded 3 million on its own,” CC2 Ventures said when asked for their projections.
Users anticipating the airdrop will likely need to wait till mid-June for more developments
During the airdrop event, scheduled around the middle of June, users can expect a universal claim button to acquire tokens. The drop will consist of LayerZero's direct airdrop and allocations from Requests for Proposals (RFPs) submitted by various builders. Earlier this week, WOOFi submitted their RFP, which rewarded omnichain stakers of the platform using a formula that took into account each user’s staked WOO and multiplier points. A user-friendly drop-down menu interface that will complement this feature, simplifying accessing and claiming individual allocations from each RFP.
In the meantime, you can check which of the 200+ RFPs have included you in their token allocation using Wenser’s official site: https://wenser.xyz/
Post airdrop, users will be able to deposit and trade the LayerZero token on WOO X.
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