Facing Massive Selling Action, ZK Token Price Falls 16% After zkSync Airdrop

Bittime - ZK token priceplunges 16% amid a wave of massive sell-off. This happened after the zkSync token airdrop program worth IDR 1.84 trillion (equivalent to $113 million) was launched. 

Since the day of listing, sell-offs have continued to occur, significantly impacting the value of the token and causing repeated price drops. This event is in the spotlight because it reflects high fluctuations in the crypto asset market and raises concerns about ZK's future.

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Impact of the zkSync Airdrop Selloff and Market Data

The launch of the ZKsync airdrop program was met with a surge in activity among recipients, according to data from blockchain analytics firm Nansen. Since registration opened for the ZK token airdrop, most of the top 10,000 earners chose to sell their newly acquired tokens.

Also read: zkSync Airdrop: 1,650,351 Addresses Potentially Receive Airdrop!

Detailed analysis reveals a wide range of responses to the airdrop. About 25.6% of top earners chose to keep their entire airdrop allocation, not selling or moving their ZK tokens. 

Meanwhile, 34.5% chose a more cautious approach, selling or transferring some of their airdrop tokens while keeping the rest. However, almost 40% of the top earners, 39.9% to be exact, chose to cash out, selling or moving all their ZK airdrop tokens.

The substantial selling pressure from this airdrop did not go unnoticed by the market. When this article was written, the price of the ZKsync (ZK) token was trading at IDR 3,004 (equivalent to $0.1891). 

Meanwhile, for 24-hour trading volume, this new token recorded IDR 7.4 trillion (equivalent to $454.6 million). Despite high liquidity, the token price saw a 16.3% drop over the last 24 hours.

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With a circulating supply of 3.7 billion ZK tokens, this project currently has a market capitalization of IDR 11 trillion (equivalent to $674.5 million). These figures underscore significant market activity. 

Also read: zkSync Airdrop Claims Have Been Opened, Here's the Guide and Details!

Additionally, there is a huge impact that the ZK airdrop has on token trading dynamics. This highlights the impact such events will have on the broader cryptocurrency landscape.

Market Reaction and ZK Token Challenges

The ZKsync token airdrop program caused a significant price drop due to large-scale selling. Data released hours after the token launched showed that around 40% of recipients sold their entire allocation. 

Meanwhile, another 34.5% sold some. While the rest, less than 26% of airdrop recipients , kept their tokens after the airdrop, further reducing the value of the tokens.

This situation is exacerbated by potential Sybil attacks, where individuals create multiple false identities to receive more tokens. While some projects have strict measures against this, ZKsync's approach is less stringent, which may be contributing to the token flood.

Despite market volatility, ZKsync plans to distribute 3.67 billion tokens to over 695,232 addresses. Of note, the top 10,000 wallets only receive 1.44% of the total allocation. 

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This wide distribution aims to increase the reach of the token. However, it also poses challenges in maintaining price stability with high trading volumes.

Cara Beli Crypto di Bittime

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 the Complete Guide on How to Buy Crypto at 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 Token Airdrop Over: Price Plummets after Massive Airdrop

Tips and Tricks for Getting zKSync Tokens from Bittime Airdrop

ZKsync Airdrop Becomes Target Attack of Misinformation Campaign

Alleged zkSync Airdrop Fraud, Sybil Account Earns Millions of ZK Tokens

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.