zkSync Faces Industry Backlash Over Alleged Token Airdrop Flaws
Summary:
ZKSync has been met with disapproval from cryptocurrency industry observers who argue the Ethereum Zero-Knowledge layer-2 scaler lacked effective anti-Sybil measures and enacted unfair distribution during its zkSync (ZK) token airdrop. Critics included Mudit Gupta, the CISO of competitor layer-2 network, Polygon, and Adam Cochran, partner at Cinneamhain Ventures. The issue prompted analytics firm Nansen to clarify their role in the airdrop. Despite this, crypto researcher Ignas highlighted that zkSync intentionally decided against strict anti-Sybil measures. Additionally, an estimated 135 million ZK tokens are predicted to possibly end up in Sybil wallets, possibly amounting to a value of as much as $52.3 million.
zkSync, the Ethereum Zero-Knowledge (ZK) layer-2 scaler, has come under criticism from cryptocurrency industry observers for its alleged lack of protection against Sybil attacks and the unjust distribution during its own token, zkSync (ZK) airdrop. Mudit Gupta, the CISO of a competitor layer-2 network, Polygon, commented on the airdrop, stating “Almost no Sybil filtering as far as I can see...Anyone who knew the criteria could’ve easily farmed the...
Earlier in the day, zkSync reported that 695,232 wallets were eligible to claim their ZK token airdrop. They also shared a seven-point eligibility list aimed at safeguarding against Sybil attacks, where one individual exploits numerous wallets to game the allocations. Cinneamhain Ventures partner Adam Cochran criticized the approach, stating, “That was not a well-planned airdrop from a Sybil perspective,” and alleging the eligibility criteria are easy to circumvent and lack a robust anti-Sybil strategy.
This critique prompted cryptocurrency analytics firm Nansen to clarify that it didn’t conduct anti-Sybil checks nor advised on ZK token allocation. Nevertheless, the firm stated it “provided data on some specific wallet segments”, which included “whales and known scammers.”
Meanwhile, crypto researcher Ignas emphasized that zkSync consciously decided against implementing strict anti-Sybil measures, pointing out that the company's press release noted problems with Sybil detection frequently preventing genuine users from accessing the platform through arbitrary filtration procedures.
An account known for tracking Sybil-related issues, "Sybil Horror 6," presented an initial estimation derived from LayerZero Labs data. The data suggested that 135 million ZK tokens could potentially end up in Sybil wallets identified by LayerZero.
Analysts are also speculating about the zkSync Gemholic project’s suspected $3.5 million rug pull. Based on ZK’s pre-market perpetual valuation on the Aevo and PancakeSwap exchanges, these tokens could be worth as much as $52.3 million. The value of the token has decreased by about 43% in the past day on both platforms, following the announcement of the airdrop by zkSync.
Matter Labs, the development firm behind zkSync, declined any immediate comment on the situation. Meanwhile, Magazine reported that ZK-rollups are viewed as the ultimate solution to scaling blockchains, according to the founder of Polygon Miden.
Published At
6/12/2024 10:28:19 AM
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