JUP Token Crashes After Listing on Centralized Exchanges
The native token of Jupiter, a decentralized exchange aggregator on Solana, experienced a significant crash shortly after being listed on centralized exchanges. Within 24 hours, the JUP token fell by 63% to $0.5887, compared to its opening trading price of $1.2707.
Listing on Major Trading Platforms
Despite being registered and made available for trading on major platforms like Binance, Bitfinex, and OKX, the listing did not help JUP recover its price. Additionally, Binance announced the launch of Jupiter futures on Binance Futures.
Pump and Dump Scheme and Wrong Token
During the excitement surrounding the JUP listing, traders accidentally engaged in a pump and dump scheme with the wrong token. Due to ticker similarity, traders bought the wrong token and caused its value to plummet once they realized their mistake. The project’s website is no longer operational.
Distribution of JUP Tokens
The token’s price collapse coincided with a large-scale distribution of JUP tokens worth $700 million. According to Jupiter’s plans, 40% of the 10 billion JUP tokens will be distributed among community members. The first stage involves distributing 1 billion JUP tokens to Solana users’ wallets.
Founder’s Comment on Token Price Collapse
The founder of Jupiter Meow explained that airdrop recipients have a large pool for ongoing sales, while potential buyers are discouraged by this selling pressure. However, he believes this system sets a reasonable price, prevents wild swings, and instills confidence between early buyers, the team, and community hodlers.
Hot Take: JUP Token Faces Steep Price Drop After Listing
The JUP token experienced a sharp decline in value following its listing on centralized exchanges. This crash was exacerbated by a pump and dump scheme involving the wrong token, causing confusion among traders. Despite the distribution of JUP tokens to community members, the token’s price could not recover. The founder of Jupiter Meow commented on the situation, emphasizing the risks and uncertainties involved in such listings. However, he also highlighted the benefits of setting reasonable prices and fostering confidence within the community. Overall, this incident serves as a reminder of the volatility and challenges associated with cryptocurrency trading.
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