{"id":98125,"date":"2024-10-28T17:37:20","date_gmt":"2024-10-28T21:37:20","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=98125"},"modified":"2024-10-28T17:38:03","modified_gmt":"2024-10-28T21:38:03","slug":"ethena-labs-faces-scrutiny-over-fund-misuse","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ethena-labs-faces-scrutiny-over-fund-misuse\/","title":{"rendered":"Ethena Labs Faces Scrutiny Over Alleged Fund Misuse, ENA Drops 6%"},"content":{"rendered":"\n

Ethena Labs, a synthetic dollar system, is under fire for allegedly squandering 180 million ENA tokens on a crypto farming<\/a> event.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Ethena Labs, an Ethereum-based synthetic dollar protocol, is under close watch after reportedly using 180 million ENA tokens in its own crypto farming event, causing a 6.01% dip in ENA\u2019s price. <\/p>\n\n\n\n

The team allegedly staked 25% of all ENA in the Season 3 farming event, raising concerns about potential dilution of rewards for regular participants and sparking ethical debates within the crypto community.<\/p>\n\n\n\n

Allegations of Token Misuse in Season 3 Event<\/h2>\n\n\n\n

Ethena Labs came under fire on October 27 when crypto investigator Nomad \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>accused the team of using 180 million ENA tokens to participate in its Season 3 farming event, thereby earning Satoshi rewards designed for ecosystem participants. <\/p>\n\n\n\n

ENA\u2019s price<\/use><\/svg><\/span><\/a> dropped to around $0.33 following the news, while Ethereum remained steady at approximately $2,512.<\/p>\n\n\n\n

The situation intensified after reports that six Ethena-linked wallets staked ENA in the event, accumulating substantial Sats and Ethereal ETRL points. <\/p>\n\n\n\n

Nomad\u2019s findings suggest that these wallets received the ENA from a Coinbase Prime Custody address, initially intended for the Ethena Foundation and core team. <\/p>\n\n\n\n

Following the event's launch in September, these wallets achieved significant gains, sparking suspicion that Ethena insiders could be influencing reward distribution. <\/p>\n\n\n\n

Ethena responded, asserting that foundation-owned tokens were \u201centitled to participate\u201d in the event.<\/p>\n\n\n\n

Ethena Denies Insider Trading Allegations<\/h2>\n\n\n\n

In response, Ethena Labs issued a statement refuting claims of staked team or investor tokens for personal gain, including Ethereal rewards. <\/p>\n\n\n\n

\n

We are aware of questions circulating in Discord and X as to whether investors or the Ethena team are earning Ethereal rewards via sENA using locked tokens.

We would like to categorically confirm to our community that absolutely no locked team or investor tokens are staked as\u2026 pic.twitter.com\/v5SxgDwCTp<\/use><\/svg><\/span><\/a><\/p>— Ethena Labs (@ethena_labs) October 28, 2024<\/use><\/svg><\/span><\/a><\/blockquote>

The team assured users on Discord that all ENA tokens from those wallets were unlocked according to the official vesting schedule.<\/p>\n\n\n\n

The foundation also clarified that these foundation-held tokens should not qualify for airdrops or similar rewards. <\/p>\n\n\n\n

Ethena announced an upcoming UI update to provide transparency, showing the total sENA eligible for airdrops and excluding undistributed sENA in Liquifi contracts.<\/p>\n\n\n\n

Lingering Concerns Over Ethena\u2019s Transparency<\/h2>\n\n\n\n

Nomad\u2019s report highlights prior issues in Seasons 1 and 2, where irregularities led to some users incurring financial losses. <\/p>\n\n\n\n

This history has heightened community concerns about Ethena Labs' transparency and commitment to fairness.<\/p>\n\n\n\n

With approximately $2.6 billion of user funds under its management, trust in Ethena\u2019s clarity and transparency is critical. <\/p>\n\n\n\n

Despite the scrutiny, Wintermute, an algorithmic trading firm, recently accepted Ethena\u2019s USDe token as collateral for over-the-counter (OTC) trading. <\/p>\n\n\n\n

This arrangement allows Wintermute customers to use USDe for various trading activities, suggesting that, despite the controversy, Ethena\u2019s assets continue to gain traction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Ethena Labs, a synthetic dollar system, is under fire for allegedly squandering 180 million ENA tokens on a crypto farming event. Ethena Labs, an Ethereum-based synthetic dollar protocol, is under close watch after reportedly using 180 million ENA tokens in its own crypto farming event, causing a 6.01% dip in ENA\u2019s price. The team allegedly […]<\/p>\n","protected":false},"author":56,"featured_media":98128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[22592,18451],"class_list":["post-98125","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ethena-ena-price","tag-ethena-labs"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/Ethena-Labs-Faces-Scrutiny-Over-Alleged-Fund-Misuse-ENA-Drops-6.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98125","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=98125"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98125\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/98128"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=98125"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=98125"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=98125"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}