LayerZero Proposes $110M Stargate Acquisition — ZRO & STG React
LayerZero Foundation announced a $110 million proposal to acquire Stargate Finance, offering a token swap of 0.08634 ZRO per STG, valuing STG at $0.1675—slightly above pre-announcement levels.
This strategic consolidation could drive future ZRO value through buybacks funded by Stargate’s continued operations, while phasing out STG.
Market response has been swift: ZRO surged ~26%, while STG jumped ~20% in the last 24 hours following the announcement, reflecting bullish sentiment around the deal.
Strategy:
- ZRO long play: consider entries closer to $X with stop just below and target off supply zones.
- STG positioning: short-term bounce expected, though long-term risk pending DAO resolution.
- Pair play: long ZRO, short STG for structural exposure.
- Keep positions moderate, given deal uncertainty and market reaction speed.
ZRO breaking out—plan to hold or hedge with STG short?
