Bittime - zkSync, an Ethereum blockchain scaling platform, has just held an airdrop worth hundreds of millions of dollars. But instead of joy, this event actually resulted in a drop in the price of the zkSync (ZK) token itself!
Based on blockchain analysis, almost half of the main recipients of the ZK airdrop immediately sold all the tokens they received. As a result, the price of ZK immediately fell by 34.5% since its launch.
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High Enthusiasm for zkSync Token Airdrop, But…
The zkSync airdrop program was warmly welcomed. Data shows that in less than 2 hours, 45% of tokens were claimed. In fact, to date, more than 491,000 crypto wallets have claimed these free tokens, with a total of 75% of those distributed.
Also read: ZK Nation Ready to Share ZKsync Airdrop! Golden Opportunity for ZKsync Era Users
Initially, the price of ZK had touched IDR 5,152 (US$0.32). Unfortunately, the party didn't last long. The price of ZK then dropped to around IDR 3,280 (US$0.20). ZK's market capitalization also came under pressure, falling from a peak of over IDR 17.6 billion (US$1.1 billion) to only around IDR 12.3 billion (US$772 million).
Who is the mastermind behind the zkSync token price drop?
Analysts suspect that the main cause of the drop in ZK prices was a massive selling action by the main recipients of the airdrop. In fact, zkSync has previously defended itself regarding their airdrop recipient selection criteria.
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zkSync claims that these criteria are strict enough to prevent manipulation.
However, many consider zkSync's "anti-Sybil" criteria to be too loose. This criterion aims to prevent the use of multiple crypto wallets by one party in order to reap greater profits from airdrops.
Also read: ZKsync Airdrop will be held next week, here are the details!
zkSync believes that a Sybil filter that is too strict could actually eliminate potential users. As a result, they chose a unique airdrop design aimed at rewarding the most users.
Valuable Lessons For Crypto Investors
This incident is an important reminder for crypto investors. Even though the airdrop program is often greeted enthusiastically, the reaction of the recipients, such as what happened in the zkSync case, is actually in the spotlight.
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Volatility and speculation are commonplace in the world of digital assets. Investors need to always be alert and have sufficient information before making investment decisions.
Don't be easily lulled by the lure of free tokens, do in-depth research and understand the risks involved.
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You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Learn Complete Guide How to Buy Crypto on Bittime.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also read:
zkSync Airdrop Claims Have Been Opened, Here's the Guide and Details!
ZkSync Towards Decentralization: Tokens and Airdrops Coming Soon!
ZKsync Airdrop Becomes Targeted Attack of Misinformation Campaign
ZK Nation Admits Imperfections of zkSync Airdrop, Timeline Remains the Same
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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