zkSync’s (ZK) Price Drops 34.5% Amid Controversial Airdrop and Massive Sell-Off
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Nearly half of the top wallets that received the new zkSync token on Monday, 17th June, 2024, have already sold their entire allocation, contributing to a 34.5% fall in the price of ZK since its launch.
As per a data set secured from Nansen, a blockchain analysis firm, nearly 41% of tracked addresses sold their entire airdrop, while 29.2% sold at least some of their tokens. Over 486 million ZK tokens were sold across these groups. Only just over 30% of the top receiving wallets have held onto their ZK tokens.
zkSync’s Market Impact Analysis
The current price of zkSync is $0.2046, with a market cap of $771,478,563 and a 24-hour trading volume of $1,159,255,968. This is a significant drop from the previous day’s opening price of $0.2826. The 24-hour change for zkSync is -20.34%, its 6-hour change is +2.38%, and its 1-hour change is -4.1%
zkSync Airdrop Controversy Explained
It is alleged that the major sell-off happened due to criticism of zkSync’s airdrop criteria. Some people felt the measures to prevent Sybil attacks – where multiple wallets are used to manipulate airdrops – were too weak.
Earlier, on 15th June, zkSync updated a document to explain their unusual decision. They argued that strict Sybil filtering could mistakenly target real users. As per their view, they designed the airdrop to reward the largest number of genuine users, striking a balance between preventing abuse and ensuring fair participation.
The significant sell-off by top wallets has led to a sharp decline in zkSync’s price, highlighting the challenges and controversies surrounding airdrop distributions and Sybil attack prevention.
