LayerZero plans to acquire Stargate for $110 million, sending STG and ZRO token prices higher.
- LayerZero offers to swap STG tokens for ZRO at a set rate
- STG and ZRO rise over 16% and 23% in one day
- Deal faces criticism from Stargate’s community
LayerZero Wants Stargate Back
The LayerZero Foundation has proposed to buy the Stargate protocol for $110 million. Stargate was originally created by LayerZero in 2022. If approved, this deal would bring Stargate back under LayerZero’s full control.
LayerZero says this move will help both platforms grow faster. The plan includes swapping Stargate’s token (STG) for LayerZero’s token (ZRO) at a rate of 1 STG for 0.08634 ZRO.
Token Prices Jump
The news caused the prices of both tokens to climb. ZRO jumped over 23% in one day to $2.44, according to CoinGecko. It’s also up nearly 40% this week. STG rose about 16.5% in 24 hours to $0.19.
Despite the gains, both tokens are still far below their all-time highs. ZRO is down 67% from its December high of $7.47, and STG is down over 95% from its 2022 peak of $4.14.
CEO Pushes for Faster Growth
LayerZero CEO Bryan Pellegrino said the plan will help them build and ship products faster. He believes the deal will give the Stargate team more tools and money to work with. He also said it will make things simpler for people using the LayerZero system.
The new plan would replace STG with ZRO, which he called a “more liquid token.” He said it would give the Stargate community more direction and better access to resources.
STG Holders Push Back
Even with rising prices, many STG holders are not happy. On Stargate’s community forum, some said the deal isn’t fair. They’re upset that the new plan removes features they liked, such as the ability to stake their STG for rewards.
Some users said the offer does not benefit current STG holders and called for better terms — including a possible 1:1 swap. Others agreed that merging the tokens could simplify things but still rejected the offer as it stands.
The Stargate community will have seven days to comment on the proposal before voting on it through the platform’s decentralized system.
Source: cointelegraph.com