Renzo’s ezETH dropped 18.3% to around $2,642 within minutes. Before recovering, it was still down 5.6% within the past 24 hours. It is trading at $3,077 and is not equal to the price of Ether.
ezETH is a liquid restaking token (LRT) from the Renzo protocol. Users earn ezETH by restaking ether or other liquid staking tokens on the platform. As such, ezETH should maintain the same value as ether.
However, it was explained that Stakers on Binance Launchpool had the opportunity to sell their tokens before ezETH holders, so the sell-off occurred as buyers did not want to hold ezETH after learning about the REZ airdrop details.
Renzo also describes the distribution allocation of other tokens, which doesn’t make sense. With over 60% of tokens sent to teams, investors, and advisors.
Additionally, Renzo will airdrop tokens to NFT holders of collections not affiliated with the protocol. This raises concerns about insider trading.
refer : theblock.co
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