The Renzo restaking token experienced a rapid decline just minutes before its eventual recovery, currently trading below Ether. This downward trend may be attributed to users seeking to exit ezETH after encountering confusion regarding Renzo's distribution plan. Experts note a $700 drop in ezETH's value, followed by a recovery post-depeg. Over the past twenty-four hours, ezETH saw a 5.6% decrease in value, trading at 12:40 PM Eastern Standard Time. ezETH, a Liquid Restaking Token (LRT) from Renzo, allows users to obtain it by restaking Ether or any liquid staking token on the BC.Game platform.

Both the Renzo restaking token and Ether hold equivalent value, with Ethereum priced at $3179. Binance Labs recently announced the token distribution plan for REZ, with 10% allocated for airdrops out of a total token supply of 10 billion and a circulating supply of 1.05 billion. Half of this 10% will be allocated to the season 1 airdrop, offering Binance stakers an opportunity to sell their tokens.

A sell-off occurred as buyers sought to exit ezETH, with Binance Launchpool providing a chance to stake tokens and earn rewards. Renzo's promotion of token distribution with unequally sized pie chart allocations has caused confusion among users. The pie chart indicates over 60% of tokens going to crypto investors, advisors, and the team. There are concerns that Renzo may have airdropped tokens to unrelated NFT holders, sparking fears of insider trading.

ezETH experienced a depreciation from its anticipated value, deviating sharply from the price of Ether, likely due to negative sentiment regarding tokenomics disclosures within the decentralized finance industry. Liquid restaking tokens, particularly those pegged to ETH, have gained popularity among airdrop hunters in the decentralized finance sector, who anticipate receiving a larger share of project tokens upon launch.

Renzo faced backlash from the crypto community after revealing that only a small portion of the REZ token supply had been reserved for the initial phase of the airdrop. It was disclosed that farmers in the REZ Binance Launchpool would receive 2.5% of the tokens, contributing to the heated discussions surrounding the Renzo Restaking token. Investors had ample time to divest their shares before airdrop beneficiaries, leaving ezETH holders disappointed by the unexpected turn of events, coinciding with attempts to exit holdings that do not permit direct withdrawals of assets.