LayerZero proposes to acquire Stargate for $110 million, STG token will be burned

LayerZero Foundation has proposed to acquire the Stargate Finance bridge (STG) for $110 million. If approved, Stargate will become part of #LayerZeroFoundation , the STG token will be burned and may be converted to LayerZero's ZRO token.

Acquisition to strengthen the ecosystem

This proposal aims to unite the two projects, helping #Stargate to implement the proposed development roadmap and strengthen LayerZero's ecosystem. Although previously heavily invested by Alameda Research, the STG token price has significantly decreased. However, after the proposal was announced, both ZRO and STG rose by over 12%, indicating a positive market reaction.

Mixed reactions from the community

Currently, the proposal is still in the community feedback phase and has not yet been officially voted on. Some members of the Stargate DAO believe that the price of $110 million is too low, not commensurate with the value and the trading volume of up to $70 billion that Stargate has handled.

However, LayerZero founder, Bryan Pellegrino, stated that his proposal is fair and committed not to participate in the upcoming vote to avoid conflicts of interest. This merger is expected to create a significant change in the LayerZero ecosystem and reshape the future of this cross-chain bridge. #anhbacong