zkSync Holders Dump Tokens After Airdrop Leading to 345 Price Crash
Key Points
– A significant price drop of 34.5% occurred after many recipients sold their zkSync airdrop tokens.
– zkSync faces criticism for its airdrop criteria, particularly regarding vulnerability to Sybil attacks.
– Balancing fair airdrops and preventing abuse poses challenges in the crypto space.
The highly anticipated zkSync airdrop took place on June 17, 2024, distributing free tokens to users. However, what followed was unexpected. Nearly half of the top recipients decided to sell off their entire allocation, causing a sharp 34.5% decline in the price of ZK.
Data from Nansen, an analytics company specializing in blockchain, shows that 41% of monitored addresses quickly sold all their zkSync airdrop tokens, while 29.2% sold some. In total, over 486 million ZK tokens were traded, leaving only a small 30% of top wallets holding onto their allocation.
zkSync’s Current Status
At present, zkSync is valued at $0.2046, with a market cap of $771,478,563 and a substantial 24-hour trading volume of $1,159,255,968. This represents a notable decrease from its opening price of $0.2826 the day before. The cryptocurrency experienced a 24-hour change of -20.34%, with slight fluctuations of +2.38% over six hours and a recent decline of -4.1% in the last hour.
Criticism and Response
Criticism has arisen over zkSync’s airdrop criteria, with concerns about vulnerability to Sybil attacks being raised as a factor in the significant sell-off. In response, zkSync updated their guidelines on June 15, defending their decision to prioritize inclusivity. They argued that overly strict Sybil filtering could unfairly impact genuine users. The airdrop was designed to reward authentic participants while upholding fairness and integrity, according to zkSync.
Impact on zkSync’s Market Position
The substantial selling activity by major wallets has clearly affected zkSync’s market performance, highlighting the challenges and controversies surrounding airdrop distributions and safeguards against Sybil attacks.
Will this event influence future airdrop strategies? Share your thoughts and predictions with us!