- On-chain data reveals that those who received the much awaited ZKsync airdrop were quick to dump their new coins as soon as they got them.
About 41% of the top 10,000 Ethereum addresses that receive ZK tokens sold all of their assets within 24 hours of the Monday dip, according to blockchain analytics firm Nansen.
This group, according to Nansen, is made up of paper-hands investors who sell their shares at the first sign of crisis or under any circumstances.
Airdrop Jeets ZKsync
Thirty-one percent of receivers sold some of their shares, while just 28.8% of recipients kept the entire airdrop or grew their interests. Granted, as these addresses make up only 1.44% of all wallets eligible for the drop, the trend may have been different for recipients with smaller position sizes.
Selling pressure amounted to $346.7 million for locations that sold all of their ZK, whereas partial sellers lost out on $149.2 million in sales.
As of right now, ZK has a $751 million market capitalization, per CoinGecko. In the past day, the token’s price has dropped 16.6%, with trading volume hitting about $1 billion.
Selloffs for a recently airdropped cryptocurrency are seldom unprecedented. The value of Starknet’s token, a competing layer 2 Ethereum network, fell by 49% in just one day following its airdrop in February.
Along with the selloff, there has been a general decline in the cryptocurrency market, with Bitcoin and Ethereum falling 2.9% and 2.78% over the last day.
At the time of writing, the largest single beneficiary of ZKsync airdrop claimed approximately 8.3 million ZK, or $1.7 million. A sizable group of smaller recipients claimed nearly 53,000 tokens, which have a current market value of about $10,600. A portion of the overall airdrop, 3.675 billion ZK, was given to ZKsync users and early adopters.
ZKsync: What Is It?
Using zero-knowledge rollups, ZKsync is a layer 2 blockchain that enables faster and less expensive Ethereum transactions while maintaining Ethereum’s financial stability. ZK token owners have the ability to delegate their tokens, take part in network governance, and engage in community activities.
Some of the initial tokens were distributed to “contributors” such as developers, researchers, communities, and businesses, but the majority went to network users.
With 21 billion units of fully diluted market capitalization, only 17 percent of ZKsync’s tokens have been sold thus far.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
