Crypto: zkSync Token Crash Post AirDrop—What Happened?

Blockchain analysis revealed that nearly half of the main wallets that received the new zkSync token (ZK) during an airdrop have already sold their entire allocation! This has led to a 34.5% drop in the price of ZK since its launch. The data covered the “top 10,000 addresses” that received the crypto airdrop, although this only accounts for 1.4% of the 695,232 wallets eligible for the airdrop of 3.7 billion ZK tokens.

Massive sale of zkSync crypto! The Airdrop turns into a drama

On June 17, the zkSync Association reported that 45% of the tokens had been claimed in less than two hours! This caused some initial network issues. To date, more than 491,000 crypto wallets have claimed nearly 75% of the airdropped ZKs, according to compiled data.

More than 45% of the airdropped ZK token supply has been claimed by over 225,000 addresses in less than 2 hours 😳

It's a Monday, don't you have work? https://t.co/gSA8mc0QOg

— ZK Nation (@TheZKNation) June 17, 2024

The ZK crypto reached a high of $0.32 shortly after its launch but fell to around $0.20. With only 17.5% of its total supply currently on the market, its market capitalization is about $772 million, down from a peak of over $1.1 billion shortly after launch.

Is zkSync the cause of its own misfortune?

The massive sale by the main wallets comes after zkSync defended its airdrop criteria against criticism! Some claimed that the anti-Sybil measures were too lax. These measures aim to prevent entities using multiple crypto wallets from manipulating the airdrops. The project updated a document on June 15 to assert that aggressive Sybil filtering could have falsely flagged real users, which is why it chose a “unique airdrop design” aimed at rewarding the largest number of organic users.

To conclude, although the zkSync airdrop was a highly anticipated event in the crypto community, token holders’ reactions highlight the volatility and speculative nature of the market. Investors must remain cautious and informed, as rapid sell-offs and price fluctuations are common in the digital asset space.