Scroll disputes allegations after SCR token drops 32%

Scroll (CRYPTO:SCR), a layer-2 Ethereum (CRYPTO:ETH) scaling solution, has responded to allegations surrounding its controversial SCR token launch, which saw its price fall 32% on its first trading day.

Critics accused Scroll of enabling token dumping through large allocations to whale wallets during its October airdrop.

In a November 28 post on X, Scroll co-founder Sandy Peng dismissed these claims as “wild,” emphasising that SCR allocations were primarily used to provide liquidity to decentralised exchanges (DEXs).

“Scroll allocated a negligible amount of Marks to its own wallets,” Peng stated, adding that greater clarity could have been provided during the process.

“In hindsight, removing Marks for clarity would’ve been better. Lesson learned,” Peng said.

The SCR token launch sparked backlash, with Rushi Manche, co-founder of Movement Labs, describing Scroll as “probably one of the worst actors in the space.”

Manche alleged that the team “airdropped to [team members’] wallets and dumped.”

Despite the controversy, Peng highlighted Scroll’s efforts to restructure its team and reflect on community feedback.

The platform has announced Session 2, a follow-up airdrop aimed at addressing user concerns.

SCR, designed as both a governance and utility token, has a total supply of 1 billion tokens.

Its allocation includes 15% for airdrops, 35% for ecosystem development, and portions for investors, contributors, and the Scroll Foundation.

The platform operates as a zero-knowledge (ZK) rollup, competing with networks like ZKsync (CRYPTO:ZK) and Starknet (CRYPTO:STRK), which are positioned to replace optimistic rollups as Ethereum’s leading scaling solutions.

The incident sheds light on broader challenges within the cryptocurrency space.

According to crypto researcher Aylo, 23 out of 31 significant airdropped tokens have depreciated since their listings, emphasising the need for greater transparency and robust mechanisms in token distribution practices.

At the time of reporting, the Scroll price was $0.8172.