Berachain is grappling with a severe token price collapse, significant layoffs, and a developer exodus. The BERA token, once valued at $9, has plummeted to $0.70, marking a tenfold decrease over the past year. This decline is attributed to a model with low liquidity and high fully diluted valuation, leading to artificial price inflation and subsequent collapse. The Berachain Foundation's strategy, which heavily favored venture capitalists, has been criticized for marginalizing retail investors.
The foundation's recent year-end summary acknowledged the challenges posed by market volatility and internal strategies. Despite initial success with its Proof-of-Liquidity consensus mechanism and ecosystem expansion, Berachain's total value locked (TVL) has dropped from $3.3 billion to $180 million. The foundation has shifted focus from retail marketing to foundational development, resulting in layoffs and the departure of key developers. With large token unlocks scheduled, further selling pressure is anticipated, exacerbating community dissatisfaction.
Berachain Faces Token Collapse, Layoffs Amid Developer Exodus
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