EigenLayer, a Ethereum yield-boosting protocol, has admitted to withholding the truth about its insider allocations, stating that most of its token supply was not for sale despite insiders being able to cash out rewards. The protocol had received significant funding from investors such as Andreessen Horowitz, claiming to be able to compete with the largest liquid restaking protocol on Ethereum, Lido. However, it was revealed that investors holding 'full lock' tokens were able to sell the staking rewards, leading to misleading conclusions and a decline in the protocol's value. The protocol's value has dropped 60% since its peak in April.



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