tl;dr
The Ethereum Layer-2 network Scroll has faced criticism from the crypto community for partnering with Binance Launchpool. This move aimed to distribute 55 million SCR tokens through the exchange's program, sparking dissatisfaction among users. Many felt that Scroll prioritized Binance participants o...
Ethereum Layer-2 network Scroll has faced criticism from the crypto community for partnering with Binance Launchpool. This move aimed to distribute 55 million SCR tokens through the exchange's program, sparking dissatisfaction among users. Many felt that Scroll prioritized Binance participants over its dedicated user base, especially as Binance Launchpool users received 5.5% of tokens after just two days, while mainnet participants received only 7% after contributing for over a year.
Scroll co-founder Ye Zhang defended the partnership, stating that it was part of a strategy to support growth and ensure the protocol's long-term success. He emphasized the practical advantages of partnering with Binance and clarified that the funds allocated to the Binance Launchpool came from the protocol's growth budget, not the community airdrop. Zhang expressed confidence that the partnership with Binance would help address significant challenges related to token distribution and organic growth.
The crypto community has significantly criticized the Ethereum Layer-2 network Scroll’s SCR governance token on Binance Launchpool. Scroll, a zkEVM rollup, currently ranks as the sixth-largest Ethereum Layer-2 network. Data from DeFillama shows that the total value locked (TVL) on it is $1.09 billion. SCROLL REVEALS WHY IT PARTNERED WITH BINANCE Sponsored Sponsored Earlier in the week, BeInCrypto reported that Scroll partnered with Binance . This move is designed to distribute 55 million SCR tokens, representing 5.5% of the token’s total supply, through the exchange’s Launchpool program. This initiative ran from October 9 to October 10 and sparked a wave of dissatisfaction among community members.
Many users expressed concern that the project prioritized Binance participants over its dedicated user base. The primary contention arose from the token distribution strategy. Community members expressed frustration that Scroll allocated only 7% of tokens to mainnet participants — who had contributed for over a year — while Binance Launchpool users received 5.5% after just two days of involvement. Sponsored Sponsored Read more: A Beginner’s Guide to Layer-2 Scaling Solutions This disparity led to accusations that Scroll was prioritizing centralized exchange partnerships over its commitment to decentralization.
“It’s a tough decision to make. I strongly doubt that it’s a good decision long term. Imagine Vitalik Buterin paying 5.5% to Okx when Star_okx refused to list ETH. I like everyone in the scroll team, but kneeling to CEX is really disappointing,” one disgruntled user wrote. In response to the criticism, Scroll co-founder Ye Zhang explained that the Binance listing was part of a larger strategy designed to support growth. He acknowledged the challenges surrounding the decision but emphasized that it aimed to ensure the protocol’s long-term success.
Zhang outlined the practical advantages of partnering with Binance, particularly regarding stablecoin on-ramps and off-ramps, which are vital for Scroll’s ecosystem. He noted that to compete effectively with established platforms like Tron, significant backing from major centralized exchanges is necessary. This backing, he argued, would help attract a broader range of users to the platform. Zhang clarified that the funds allocated to the Binance Launchpool came from the protocol’s growth budget. He also dispelled rumors that they came from the community airdrop. Sponsored Sponsored “We’ve reserved 15% for community airdrops, and the launch pool allocation comes from our ecosystem and growth category, it doesn’t influence how much our own community will get. It’s because we believe it will drive global expansion as an ecosystem growth strategy We’ve compared it to Apple charging fees from apps – it’s not unreasonable considering the level of distribution they provide. Our own community will get way more via a sequence of airdrops similar to what Optimism has done,” Zhang stated. Read more: https://beincrypto.com/learn/a-deeper-look-into-the-ethereum-network/A Deeper Look into the Ethereum Network
In conclusion, Zhang expressed confidence that the partnership with Binance would help address significant challenges related to token distribution and organic growth — issues that commonly affect Layer-2 solutions. He referenced other projects like Arbitrum and Base, pointing out that while they have made strides, no Layer-2 solution has yet achieved widespread adoption. “Token distribution isn’t a one-time event, it’s a growth lever and also helps with protocol decentralization and governance. After the initial sell-off, we expect the community that trusts us to hold, and distribution will stabilize in a healthy way,” he explained. Best crypto platforms in Europe | October 2024 YouHodler YouHodler Explore Wirex App Wirex App Explore Coinbase Coinbase Explore BYDFi BYDFi Explore Margex Margex Explore Best crypto platforms in Europe | October 2024 YouHodler YouH
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Summary:
After conducting a thorough analysis of the market charts and various technical indicators, it is evident that the stock is currently at a critical support level. The Relative Strength Index (RSI) is displaying a bullish divergence, indicating a potential reversal in the near term. Additionally, the moving averages have recently formed a bullish crossover, further supporting the likelihood of an upward price movement. However, it is essential to remain cautious as the stock is approaching a significant resistance level, which may result in a potential pullback. The Bollinger Bands are also indicating a period of increased volatility, adding to the uncertainty of the current market conditions. While the overall outlook appears optimistic, it is crucial to monitor the price action closely for confirmation of a sustained uptrend.