ENS Airdrop Shows Interest in DAOs
by Martin Gaspar
Ethereum Name Service
This week the crypto market was abuzz from not only fresh all-time highs in Bitcoin and many tokens, but also the airdrop from Ethereum Name Service (“ENS”). ENS is a blockchain naming standard that allows users to link their Ethereum and other crypto addresses, as well as metadata and content hashes, to a human-readable string of text that ends in “.eth”. This allows users to interact with crypto wallets and apps more easily than typing in a long string of letters and numbers which a crypto address typically consists of. An ENS domain can be considered a Web3 username. According to its website, there have been approximately 425,000 names registered across 166,000 owners.
Earlier this month, ENS announced that it would be decentralizing its governance process via the creation of a decentralized autonomous organization (“DAO”) and would be airdropping past users of the service ENS governance tokens. Users were allowed to claim the airdropped tokens on Monday, November 8, and the results were impressive as the governance token’s price has increased to around $60.00 as of writing, on strong investor demand. Many users received 200 or more ENS tokens, which means that their airdrop was worth over $10,000, a considerable amount relative to other airdrops.
Concentration of Talent and Capital
The price action of the token following its claiming period demonstrated that crypto investors may be getting more bullish on DAOs. The concept behind this seems to be that DAOs are the future form of companies – they are a concentration of talent and capital. Investing in DAOs may be seen as betting on the power of community and the possible crypto applications they can invent. It will be interesting to follow the evolution of ENS in this context, and whether investors are right in valuing it at a market cap of approximately $1 billion ($6 billion fully diluted) as of writing.
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CrossTower Inc. provides this content for general information purposes, to better inform you on your digital asset investment journey. We do not provide investment recommendations or provide tax advice. Please consult your investment professional or tax advisor if you require assistance in these areas.
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