Justin Sun Dumps $21.66M Worth of EIGEN Tokens Received from Airdrop, Shortly After They Became Tradable

Justin Sun was airdropped 5.374 million EIGEN tokens by EigenLayer, the most popular restaking protocol on the Ethereum network.

Justin Sun, the founder of Tron, has quickly sold all the 5.374 million EIGEN tokens he received from the EigenLayer airdrop, garnering a total of approximately $21.66 million.

The sale comes shortly after the tokens became tradable on major exchanges like Binance and HTX (formerly Huobi).

Airdrop to Justin Sun

As the largest single beneficiary of the EigenLayer airdrop, Sun was notably credited with 5.374 million EIGEN tokens. This sparked significant interest within the crypto community due to the substantial returns realized in a short time.

According to data from WuBlockchain, Sun's team withdrew 21.66 million USDT from Binance on October 2. This indicates that Sun sold all the 5.374 million EIGEN tokens, averaging a sale price of $4.03 per token, for a total of around $21.66 million.

The sale occurred within a short time after the tokens became tradable, with the price surging to $4.13 and later stabilizing at $3.58 at the time of writing.

Sun's activities have drawn attention due to the high returns realized in a short time. He received the tokens on day and, within a few hours of them becoming transferable, they were transferred to HTX and sold.

EIGEN Token Listing and Market Buzz

EIGEN tokens became transferable and went live on several exchanges on October 1, following the second EigenLayer stakedrop. This event saw the distribution of 86 million EIGEN tokens, which were initially locked upon launch.

The new listings on tier-one exchanges, such as Binance and HTX, sparked significant buzz within the crypto community, driving trading activities and price movements for the token.

EigenLayer has gained attention for its unique staking model, which allows users to stake ether and other Ethereum-equivalent assets to secure third-party networks. At its peak, EigenLayer's total value locked (TVL) reached $20 billion earlier this year, though it has since declined to around $12 billion.

Staking Rules and Investor Participation

EigenLayer and the Eigen Foundation have also released detailed guidelines regarding staking rewards and investor participation. Disclosures published on October 2, 2024, indicate that investor staking rewards will be capped at 1% of the total initial EIGEN token supply annually.

These rewards will unlock gradually over a three-year period, with weekly claims permitted.

The disclosures also stipulate that employees are barred from staking EIGEN tokens they received until September 2027. However, investors are permitted to stake their tokens but will be subject to the same lockup conditions. Notably, 75% of annual staking rewards will be allocated to Ethereum and ETH-equivalent stakers, while the remaining 25% will go to EIGEN stakers.

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