Nearly Half of zkSync Airdrop Recipient Wallets Have Sold ZK Tokens

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According to blockchain analytics provider Nansen, approximately 41% of the top 10,000 Ethereum addresses that received ZK tokens sold their entire holdings within 24 hours of the airdrop on Monday. Nansen categorizes this group as “jeets” – investors who quickly offload their assets regardless of market conditions or at the first sign of trouble.

Sell-Off Behavior Post ZKsync Airdrop

In addition, 30.1% of the recipients sold part of their tokens, while only 28.8% retained their entire airdrop allocation. However, these addresses represent only 1.44% of all wallets eligible for the airdrop, suggesting different behavior among smaller position holders.

It’s been more than 24 hours after the $ZK airdrop, so what have the top 10,000 recipients done with their tokens?

– 28.8% haven’t sold any ZK
– 30.1% have moved or sold some of their ZK from their wallet
– 41.1% have moved or sold all their ZK https://t.co/MfHP0M7zxi pic.twitter.com/R7s1GTLKXm

— Nansen 🧭 (@nansen_ai) June 18, 2024

Overall, the addresses that sold all their ZK tokens contributed to a sell pressure of $346.7 million, while those who sold partially added up to $149.2 million in sales.

Such sell-offs are not unusual for newly airdropped tokens. For instance, Starknet, another Ethereum layer 2 network, saw its token value plummet by 49% within a day following its February airdrop.

This sell-off occurs amid a broader downturn in the cryptocurrency market, with Bitcoin and Ethereum prices dropping by 2.9% and 2.78%, respectively, in the last 24 hours.

The largest recipient of the ZKsync airdrop received over 8.3 million ZK tokens, valued at approximately $1.7 million at the time of writing. Another significant group of recipients claimed about 53,000 tokens each. In total, the airdrop distributed 3.675 billion ZK tokens to early ZKsync users and adopters.

ZK Token Price Volatility

Despite being a prominent Layer 2 solution with substantial funding of $450 million, ZK’s price dropped significantly from its initial listing price of $0.2950 on Binance, plunging over 38% due to selling pressure from airdrop recipients. Currently, ZK is trading at around $0.228. Comparatively, Arbitrum and Optimism, with less funding, currently have higher Fully Diluted Valuations (FDV) than zkSync.