zkSync Plunges 20% After Controversial Airdrop As 41% Of Wallets Offload Tokens

Updated: 18 June 2024

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The zkSync price slumped after over 41% of wallets dumped almost all of their airdropped tokens.

Out of the 10,000 wallet addresses that Nansen tracks, 4,086 sold all their airdrop allocation of 343 million tokens. Another 2,983 addresses sold a partial allocation of 147 million tokens.

Only 2,931 wallet addresses, equivalent to 29% of those that received the ZK token airdrop, have yet to sell.

The data from Nansen covers 10,000 wallet addresses, which is only a fraction of the 690,951 addresses eligible for the airdrop. According to Dune, over 77% of the airdropped tokens have been claimed.

Selling activity is taking a toll on the ZK token price, which rallied yesterday to a record high of $0.30 after listing on Binance. ZK trades at $0.224 as of 03:58 a.m. EST after plunging 20% in the past 24 hours. Trading volumes have spiked by over 7,000%.

zkSync Criticized Over Its Airdrop

The selling activity around the zkSync token comes after the project faced criticism for failing to implement anti-sybil measures. According to critics, failing to implement these measures would lead to people using multiple wallets to claim the tokens.

According to Looksonchain, one user received over 3 million ZK tokens using 85 wallets. The user has already deposited the tokens on exchanges.

Someone received an #airdrop of 3.01M $ZK($753K) via 85 wallets!

This airdrop hunter then deposited 2.71M $ZK($678K) into #Binance and sold 300K $ZK for 20 $ETH($69K) via #SyncSwap.https://t.co/U4OKb7bmVW https://t.co/VAPmnj9gsj pic.twitter.com/x8YUPAspbK

— Lookonchain (@lookonchain) June 17, 2024