zkSync (ZK) Token Sees Major Sell-off Post-launch; Value Plummets by 34.5%
Summary:
Almost half of the top wallets receiving the new zkSync (ZK) token on airdrop day have sold their total allocation, causing a 34.5% price plummet since its inception. The zkSync Association stated that 45% of the tokens were claimed within two hours. So far, almost 75% of the airdropped ZK has been claimed. The token's value has fallen from a high of $0.32 post-launch to roughly $0.20. The considerable sell-off is in response to zkSync defending its airdrop criteria amidst accusations of a lax approach to anti-Sybil measures.
In the aftermath of the newly introduced zkSync (ZK) token airdrop on Monday, close to half of the top recipient wallets have already liquidated their allotment, causing a significant price drop of 34.5% since its debut. Blockchain data analysis company, Nansen, reported that about 41% of the monitored addresses cleared their entire airdrop and 29.2% have disposed of a portion of their tokens. Consequently, over 486 million ZK were sold in total. Simultaneously, just over 30% of the high receiving wallets have retained their ZK tokens.
This analyzed data encompasses the "top 10,000 addresses" that were part of the ZK airdrop. However, this data only represents approximately 1.4% of the 695,232 wallets that zkSync announced would be eligible for the airdrop of 3.7 billion ZK tokens last week. Nansen tracked the behavior of the "top 10,000 addresses" which received the ZK airdrop, identifying those who completely sold (green) and partially sold (yellow).
zkSync Association, a non-profit established last week by zkSync developers Matter Labs, mentioned on June 17 that nearly 45% of the tokens were taken within less than two hours. This intense activity resulted in initial network issues. So far, about 491,000 wallets have collected almost 75% of the airdropped ZK, as reported by Matter Labs data scientist Landon Gingerich.
The slide of ZK by 34.5% since yesterday saw prices dropping from its surpassing high of $0.32 soon after launch to roughly $0.20, as per CoinGecko statistics. The token has a total supply of 21 billion with a fully diluted value exceeding $4.4 billion.
However, merely 17.5% of its overall supply is currently on the market. It results in its market capitalization being around $772 million — a significant drop from its initial peak of more than $1.1 billion.
This substantial sell-off from top wallet holders is a response to zkSync justifying its airdrop criteria amid accusations of lenient anti-Sybil measures. These measures intend to prevent entities from using multiple wallets to exploit airdrops.
The project revised a document on June 15 reaffirming that severe Sybil filtering could have mistakenly identified genuine users. Consequently, it opted for a "unique airdrop design", intending to reward the highest number of authentic users.
Published At
6/18/2024 8:43:12 AM
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