EL CapIn addition to the previously discussed benefits of this tech, as outlined in the previous Bob-like review under the #Idea, the project has shown remarkable results and continues to reach new ATH in recent days (p.1). However, there is a potential issue (the reason for 3 stars, not 5):
Following the Arbitrum airdrop in March, there has been a sharp increase in activity on Layer Zero (p.2). It's evident that users have started utilizing the protocol to accumulate stats for the future Layer Zero airdrop (as the token was mentioned some time ago). Many of these users are the owners of multi-acc farms engaging in minimal network interactions (1-2 TXs valued at $5-10/tx) with the sole intention of receiving tokens to sell on the first green/red candle.
What is good for the project here:
- LZ earns more fees thus enhancing its runway and overall revenue numbers/growth numbers
What is bad here:
- Big sell pressure at the moment of listing, as well as a drastic decrease in real users after token distribution.
The question at hand is how Layer Zero intends to retain users and sustain the current levels of activity. Show Less
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