LayerZero’s $110M Bid Faces Pushback
Wormhole, a major cross-blockchain bridge platform, is challenging LayerZero’s recent $110 million bid to acquire Stargate, a popular crypto protocol known for its deep liquidity and cross-chain capabilities. While LayerZero’s initial offer was substantial, it failed to secure strong community backing. The original proposal lacked details on future benefits for Stargate (STG) token holders, prompting criticism from both the Stargate community and competing protocols.
In response to the feedback, LayerZero revised its offer to include a revenue-sharing plan that directly benefits STG holders. The updated proposal was more well-received, with 88.6% of voting token holders expressing support. This shift signaled growing optimism around the acquisition—reflected in rising token prices for LayerZero, Stargate, and Wormhole—amid a broader uptick in the crypto market.
Wormhole Seeks Delay to Submit Competitive Counteroffer
Despite the community’s approval of LayerZero’s revised bid, Wormhole isn’t stepping back. In a recent forum post, the team argued that LayerZero’s initial offer undervalued Stargate and lacked transparency. Wormhole has requested a five-day pause in the vote to present its own counteroffer, promising a more competitive and forward-thinking proposal.
Wormhole emphasized that its acquisition of Stargate could create a “market-leading ecosystem,” leveraging Stargate’s liquidity and Wormhole’s vast blockchain integrations. They argue that a competitive bidding process will ensure the best outcome not just for STG token holders, but for the broader DeFi landscape.
With the Stargate community closely watching, the next few days could prove pivotal. Whether the DAO agrees to halt the vote to allow Wormhole’s bid remains to be seen—but the competition underscores the growing value of cross-chain infrastructure in today’s crypto ecosystem.
