EigenLayer price has risen by over 11% in the last 24 hours after the possibility of an insider dumping tokens has been ruled out. Following the surge in price, the EigenLayer token now has a fully diluted market cap of over $5.8billion.
Earlier on Friday, a massive token dump was reported. What first came across a whale dumping $1.6m EigeneLayer tokens worth $5.87m, actually turned out to be a security breach – the Ethereum re-staking services provider clarified in a post on X.
Ruling out the possibility of an insider involvement, in an official statement on X, EigenLayer said: “In an isolated incident this morning, an email thread involving one investor’s transfer of tokens into custody was compromised by a malicious attacker. As a result, 1,673,645 EIGEN tokens were erroneously transferred to the attacker’s address.”
Last week, on Friday, PeckshieldAlert had reported that it was not a whale dumping a token but a cyberattack. The hackers used two popular crypto exchange platforms to wash out the stolen funds.
Concerns Remain But EigenLayer Community Sentiment Bullish
The fact that EigenLayer responded swiftly to what happened by identifying the breach and also partially freezing the funds, the community sentiment remains bullish about the newly launched token.
After the news broke out about the security breach on Friday, $Eigen dropped to $3.12. However, once it was established that it was not an insider job and that none of the team members or “whales” had intentionally dumped the tokens, EigenLayer price made a steady recovery gaining over 11% in 24 hours. At press time, $Eigen was trading at $3.52.
In its community post, EigenLayer has also pledged to support the exchanges to recover stolen funds and has categorically denied any possibility of a technical failure. Currently, there has been no report about recovery of stolen funds.
