Crypto Airdrops are a huge hurdle in the Ethereum space

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Crypto Airdrops are a huge hurdle in the Ethereum space

The slew of blockchains that have come out in the past year has left most deFi denizens apathetic to new launches. There were Aptos, Sei, and Sui, among others, not to mention about half a dozen new Ethereum layer 2s.

Another contender, Celestia, has just announced it is about to join the fray.

Even if you've been a member of one of Ethereum's many layer 2 networks, you may still be eligible for an airdrop of its TIA token if you've been an active user.

Token airdrops have proven themselves as a great way to bootstrap users and liquidity - look no further than the top layer 2 Arbitrum. Celestia has a better chance than most because it focuses on something unique: modularity.

In contrast to one blockchain, Celestia utilizes interconnected modules that are each responsible for specific functions.

Celestia describes this specialization as a significant breakthrough in scalability, flexibility, and interoperability. The arrest of Three Arrows Capital co-founder Su Zhu last week offers a few lessons.

Among them: going on a soul-searching trip to Bali and then spinning up another crypto business isn't enough to shirk responsibility for the collapse of your $3 billion trading firm.

The arrest in Singapore was heavily influenced by Zhu's latest venture, OPNX, a cryptocurrency exchange that also allows users to buy and sell bankruptcy claims for FTX, Voyager, and Three Arrows Capital. OX crashed more than 44% on the news and has little sign of recovery.

On the positive side, those who lost money lending to Three Arrows Capital may have a better chance at getting some of it back now that Zhu is being forced to cooperate with liquidators.

Singapore authorities also have an arrest warrant for Kyle Davies, the co-founder of Three Arrows. He was last seen in Dubai, where he plans to open a restaurant focusing on chicken-based cuisine.

Lastly, Osato Avan-Nomayo wrote up another story on DAO rage quitting, this time at Jade Protocol.

Rage quitting is becoming a more common practice among DeFi protocols.

There are 12 DAOs that raised funds, often by selling tokens, trying to make something work, but failed. token holders are increasingly voting to dissolve what's left to recoup some of their losses.

I expect the DAO rage to continue. There are still many DAOs in similar positions, and with increased competition for a decreasing pool of blockchain-based liquidity, it's going to get harder for many projects to justify burning investors' cash.

As long as tokenholders have the motivation to hold team members accountable, it is possible that they are able to keep up with the responsibilities of their team members.

In 2023, a whopping $2.2 billion of tokens have been streamed to users, leading to a surge in crypto projects.

Airdrops have not only become a way for projects to acquire users and cut out middlemen, but also to efficiently decentralise ownership.

Yearn Finance developer Banteg has put together a heat map of over 2.1 billion native Ether transfers.

The transfer patterns are hidden within the noise, depicting liquidation cascades and likely Sybil attacks over the past seven years of Ethereum activity.

For me, the marked purple hue makes Banteg's chart all the more mesmerizing, and shows how, with the right approach, data doesn't have to be soulless and dry - it can be beautiful, too.

The defunct cryptocurrency exchange had a new chance to liquidate its holdings last week when the courts gave the defunct crypto exchange the go-ahead to liquidate its holdings.

But former customers are increasingly worried that the new management may try to claw back funds from those who exited the exchange in the 90 days before its collapse.

With the liquidation of crypto lender BlockFi, the precedent set in the liquidation may protect those who withdrew less than $250,000 or are based outside the US.

Tim Craig, DeFi Correspondent at DL News, is based in Edinburgh. Tim has over $1,600, of which he owns, Swell staked Ether, Redacted Cartel, and GMX. He also holds an insignificant amount in NFTs.