For Layer 2 blockchain Manta Network's zero-knowledge proof, the billion-dollar token listing earlier this month didn't go as expected.
The blockchain first suffered a distributed denial of service (DDoS) attack, when on January 18, 135 million remote procedure call (RPC) requests temporarily paralyzed the network for several hours.
Shortly after, the transfer of 2 million MANTA tokens to the personal wallet of one of the business development representatives in Korea also sparked investor speculation, to which Manta later clarified that this was just the first investment support for its decentralized finance (DeFi) project LayerBank.
The network has since largely returned to normal and currently has a market capitalization of $3.1 billion. In an interview with Cointelegraph on January 25, Kenny Lee, co-founder of Boston-based p0x lab and creator of the Manta Network, said the protocol's profits have skyrocketed thanks to layer-2 technology.
“We have saved approximately 1 million users in the last 30 days,” Lee said. “Moving forward, we're kind of trying to find a balance between the actual volume of transactions and the amount of actual revenue.”
Seriously so proud of the team and so humbled by the community support as we navigate one of the weirdest times for @MantaNetwork. The barrage of misinformation and illicit attacks took us all by surprise. I don't think the community could have asked for a better team to take on…
— Kenny.manta (,) (@superanonymousk) January 20, 2024
According to Lee, as the network expands, p0x Labs will award ecosystem grants to projects with strong historical performance, such as Zero Lend, which exceeded $19 million in total value locked (TVL) shortly after launch. “We definitely look for projects that are already well established in this space,” the co-founder said.
In this year's budget and roadmap, Lee plans to focus on business development in Korea, where the Ethereum virtual machine money market LayerBank and the Shoebill lending protocol, which are part of the Manta ecosystem, have exceeded $350 million in TVL. “I think we want to build more local bases in general. And so we're going to use a lot of ecosystem funds to kind of catalyze that growth,” Lee said.
Despite the growth, the project has also had to abandon outdated goals, such as the original idea of exploring the privacy aspect of zero-knowledge technology. “In regards to this [в США] there is not enough regulatory clarity,” Li explained. “The balance between clarity and technological feasibility in terms of creating a scalable user experience is simply not there.”
Meanwhile, the network has focused on zero-knowledge decentralized applications, including fully online poker and the issuance of decentralized IDs. Manta Network's total locked value currently stands at $428 million.
On July 19, 2023, p0x labs raised $25 million in Series A funding at a $500 million valuation, led by Polychain Capital and Qiming Venture Partners.
Related: Manta Network Suffered DDoS Attack Amid Exchange Listing