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ZK token price plummets due to massive post-airdrop selloff
Following the highly anticipated announcement and subsequent airdrop of ZK tokens by zkSync, Nansen data reveals that nearly half of the wallets that received the funds have already sold their entire allocation.
This significant sell-off caused the ZK token to collapse, losing over 30% of its value in less than 24 hours.
Massive sell-off of ZK tokens
After the distribution of the zkSync (ZK) token began yesterday, data from the analysis platform Nansen indicate that almost 41% of the addresses that requested the allocation have already sold them all. Some addresses, which received large amounts of up to 2.4 million tokens, have completely liquidated their allocation.
The Nansen data also reveals that approximately 29.8% of addresses have sold a portion of their tokens. Among the top 10 portfolios, three sold small amounts, five retained their entire allocation, and two liquidated 100% of their holdings. Since Monday, over 491 million ZK tokens have been sold following their distribution.
However, the data only covered the top 10,000 wallets, which represents about 1.4% of addresses that received airdrops.
Last week, zkSync announced that nearly 695,000 wallets would receive around 3.75 billion tokens in the airdrop. Second data according to Matter Labs expert Landon Gingerich, 491,000 wallets have claimed their share of the airdrop since the report was published.
According to an X survey, in the first 2 hours after the request period opened, 45% of the total airdrop allocation was requested. send from the zkSync Association, a nonprofit organization introduced by Matter Labs last week. These huge claims have led to a significant network issue for zkSync.
The zkSync team tweeted about high network load, which may cause performance degradation for some RPC services.
Sharp drop in the price of ZK tokens
Due to widespread sale, Coingecko data shows that the ZK token has depreciated by more than 30% since its launch. At the time of listing, it peaked at $0.30, before falling to around $0.20.
At the time of writing, the ZK token is trading at $0.22, marking a 25% decline in the last 24 hours. With a market capitalization of $825 million, ZK ranks among the top 100 tokens based on total valuation.
Between the price drop and the continued distribution of tokens, there have been complaints that the zkSync team has not effectively managed Sybill walletsas many dodgy wallets have qualified for the airdrop.