Flawed Airdrop? zkSync Holders Dump Tokens After Launch, Price Crashes 34.5%

zkSync’s much-anticipated airdrop went live on Monday, June 17th, 2024, showering users with free tokens. But what happened next might surprise you… Nearly half of the top recipients dumped their entire allocation, triggering a 34.5% price plunge for ZK.

Data from Nansen, a blockchain analysis firm, reveals that 41% of monitored addresses swiftly offloaded their entire zkSync airdrop, while 29.2% opted to sell some tokens. The aggregate turnover reached over 486 million ZK tokens, leaving only a meager 30% of top receiving wallets holding onto their allocation.

Here’s more about this.

zkSync’s Market Analysis

As of now, zkSync is priced at $0.2046, boasting a market cap of $771,478,563, and witnessing a hefty 24-hour trading volume of $1,159,255,968. This marks a significant drop from its opening price of $0.2826 the previous day. The cryptocurrency saw a 24-hour change of -20.34%, with minor fluctuations of +2.38% over six hours and a recent dip of -4.1% in the past hour.

. 

Criticism and Controversy

Criticism has mounted against zkSync’s airdrop criteria, believed to have fueled the major sell-off. Critics argue that the measures to prevent Sybil attacks—where multiple wallets manipulate airdrops—were inadequate.

On 15th June, zkSync responded by updating their guidelines, defending their decision as aimed at inclusivity. They justified their approach by stating that overly stringent Sybil filtering could inadvertently penalize legitimate users. The airdrop, according to zkSync, sought to reward genuine participants while striving to maintain fairness and integrity.

Impact on zkSync’s Market Position

The substantial sell-off by prominent wallets has undeniably impacted zkSync’s market performance, shedding light on the complexities and controversies surrounding airdrop distributions and measures against Sybil attacks.

Will this incident impact future airdrop strategies? Join the conversation and share your predictions!