Binance-Listed Altcoin Falls Big – Here’s Why

After a year of anticipation, the launch of Scroll’s governance token, SCR, has encountered significant challenges due to issues with the distribution of the tokens, leading to a sharp decline in its value.

The layer-2 network, once touted as the “turtle that won the Ethereum scaling race,” is now grappling with a 32% drop in the price of its token just one day after its launch.

Launched at $1.40, SCR is currently trading at $0.89, with its market cap falling below $180 million. This drastic drop has pushed the token out of the top 250 cryptocurrencies on CoinMarketCap, raising questions about Scroll’s token launch strategy and long-term prospects.

The decline in SCR’s value coincides with a 23% drop in the network’s Total Value Locked (TVL), which hit $1 billion earlier this month, according to DeFiLlama data. While underperforming token launches are not uncommon, Scroll’s struggles appear to be linked to its token allocation decisions.