TL;DR
- 41% of major wallets that received ZK tokens have sold them outright.
- The ZK token price has fallen by 34.5% since its launch.
- About 30% of major wallets have held their tokens.
In a recent disclosure from Nansen, a blockchain analytics firm it was discovered that 41% of major wallets that received zkSync’s new ZK token in the airdrop have already sold their entire allocation.
This sell-off has contributed to a drastic drop in the price of the token, which has plummeted 34.5% since its launch, going from a high of $0.32 to approximately $0.20, according to data from CoinMarketCap.
Nansen‘s analysis covered the “top 10,000 addresses” that received the airdrop, representing just 1.4% of the 695,232 eligible wallets.
Among these addresses, in addition to the 41% that sold their entire allocation, 29.2% sold at least a portion of their tokens, collectively adding up to more than 486 million ZK tokens sold.
On the other hand, just over 30% of major wallets have decided to hold their tokens.
The impact of these sell-offs on the market has been significant.
Although the ZK token has a total supply of 21 billion, only 17.5% of this supply is currently in circulation, putting the market capitalization at around $772 million, down from the initial peak of over $1.1 billion.
This volatility reflects the dynamics of supply and demand in a still young and developing market.
The zkSync Association, a non-profit organization recently created by zkSync developers, reported that 45% of the tokens were claimed in less than two hours from the start of the airdrop, causing some initial problems on the network due to high demand.
To date, over 491,000 wallets have claimed nearly 75% of the tokens distributed in the airdrop.
Reviews and Defenses of zkSync
Despite the initial enthusiasm, the zkSync airdrop has not been without criticism.
Some users have pointed out that the anti-Sybil measures, designed to prevent entities with multiple wallets from disproportionately benefiting from the airdrop, were too lax.
In response, zkSync defended its judgment, arguing that a more aggressive anti-Sybil leak could have wrongly identified legitimate users as fraudulent.
Therefore, they opted for a unique airdrop design aimed at rewarding as many organic users as possible.
This approach has sparked debate about the balance between security and inclusivity in token distribution.
While some users appreciate the opportunity for broad participation, others worry about the integrity of the process and its impact on market stability.
The continued drop in the price of the ZK token reflects these tensions and underscores the challenges inherent in implementing airdrops in the crypto ecosystem.
The launch of zkSync‘s ZK token has proven to be a complex event full of learnings for the crypto community.
The significant token selling by major wallets and the subsequent drop in price underlines the need for more robust strategies to handle the distribution and initial trading of new digital assets.
