🎉🎉Ethena Just Hit $1.2 Billion Market Cap – Here's What You Need to Know🎉🎉
Ethena Labs just announced the launch of its governance token, $ENA , and the expansion of its high-yield stablecoin, the synthetic dollar token USDe. The upcoming debut has attracted considerable attention, including praise from Arthur Hayes, former CEO of BitMEX, among other cryptocurrency enthusiasts. But he has a complex backstory.
Ethena says it will use this new token to be more decentralized, accessible and secure. The company also released 5% of the total supply of $ENA to all USDe and sUSDe holders as part of its Season 2 campaign, which will last for five months.
But Ethena became caught in controversy when a February press release appeared to imply that they had raised millions from notable investors, who were later revealed to have no stake. In a now-deleted tweet, Ethena said the post was inaccurate and the team later told Coindesk it was an "honest mistake."
Meanwhile, the coin's approach has also been considered quite risky, especially as the crypto community is still feeling the repercussions of the collapse of the Terra ecosystem. Some experts claim that the Ethena protocol itself has some flaws. However, all that controversy still wasn't enough to cool investor interest. Since its launch, the coin has gathered enough market capitalization to claim a spot as the 80th most valuable cryptocurrency in the ecosystem with over $1.2 billion in total market capitalization. Before you jump on the ENA train, it's a good idea to understand the intricacies of how it operates. The protocol's approach to minting, redeeming, and ensuring the stability of USDe is complex and makes the spirit of DYOR difficult for beginners.
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