The Impact of ZK Token Airdrop on the Crypto Community 🚀
Following the highly anticipated announcement and subsequent airdrop of ZK tokens by zkSync, Nansen data reveals that nearly half of the wallets that received the funds have already sold their entire allocation. This significant selloff caused the ZK token to plummet, losing over 30% of its value in under 24 hours.
Massive Selling Activity of ZK Tokens
After the distribution of the zkSync token (ZK) started, data from the analytics platform Nansen indicates that almost 41% of the addresses that claimed the allocation have already sold all of them. Some addresses with substantial amounts, up to 2.4 million tokens, have completely liquidated their allocation.
- Nansen data reveals that about 29.8% of the addresses sold a portion of their tokens.
- Among the top 10 wallets, three sold small amounts, five retained their entire allocation, and two liquidated 100% of their holdings.
- Over 491 million ZK tokens have been sold since Monday following their distribution.
The data included the top 10,000 wallets, representing approximately 1.4% of the addresses that received the airdrops.
Last week, zkSync announced that close to 695,000 wallets would receive about 3.75 billion tokens in the airdrop. According to data by Matter Labs expert Landon Gingerich, 491,000 wallets have claimed their share of the airdrop since the report’s publication.
Significant Drop in ZK Token Price
Due to widespread selling, Coingecko data shows that the ZK token has depreciated by more than 30% since its inception. It peaked at $0.30 upon listing but subsequently fell to approximately $0.20. Currently, the ZK token is trading at $0.22, marking a 25% decline over the past 24 hours with a market capitalization of $825 million.
- The ZK token ranks among the top 100 tokens based on total valuation.
- There have been complaints about the zkSync team not effectively handling Sybill wallets, as many suspicious wallets qualified for the airdrop.
Hot Take: What to Make of the ZK Token Airdrop Fallout? 📉
As a crypto enthusiast, the massive selloff of ZK tokens following the airdrop announcement highlights the volatile nature of the crypto market. The swift decline in token value and the significant number of wallets liquidating their allocations underscore the importance of staying informed and vigilant in the crypto space.
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