Cryptocurrency-focused social platform Zora triggered widespread confusion today after it launched its eponymous memecoin, ZORA, without any prior announcement or accessible claim link.
This move led many users to attempt to manually interact with the token's smart contract to claim their shares.
The token, which runs on Base, an Ethereum layer-2 network, was distributed silently, catching the community off guard. Since there was no user-friendly interface at launch, only technically savvy participants were able to claim ZORA by interacting directly with the contract, which was a significant hurdle for newcomers to the space.
Despite the lack of communication, millions of dollars worth of tokens have already been allocated to major centralized exchanges like Binance and Bitget, as well as decentralized platforms like Uniswap and 1inch. Leveraged options trading is also available on Hyperliquid, suggesting that the infrastructure for ZORA’s trading has already been prepared.
According to on-chain data from Arkham Intelligence, around $6 million worth of tokens moved between exchanges. Critics argue that allowing claims ahead of an official Token Generation Event (TGE) creates an unfair advantage for insiders, particularly those with early access to the smart contract.
Backlash was swift on social media platform X, where users condemned Zora's opaque launch process.
Zora had previously raised $2 million in seed funding, followed by a $50 million round in 2022 that also included Coinbase Ventures as a backer.
The token was also added to the pre-listing pool of cryptocurrency exchange Binance today.
*This is not investment advice.
