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Almost Half Of ZKsync Airdrop Recipients Sold All Of Their Tokens: Nansen

Andrew Throuvalas
Last updated: | 1 min read
zksync airdrop

Recipients of the highly anticipated ZKsync airdrop were eager to dump their new coins immediately upon receipt, on-chain data shows.

According to blockchain analytics provider Nansen, roughly 41% of the top 10,000 Ethereum addresses to receive ZK tokens sold their investments entirely within 24 hours of the Monday drop. Nansen classifies this group as “jeets”—paper-hands investors who sell their holdings no matter what or at the slightest bit of trouble.

ZKsync Airdrop Jeets

Another 30.1% of recipients sold part of their holdings, while just 28.8% kept the full airdrop or added to their positions. Granted, these addresses represent just 1.44% of all wallets eligible for the drop, so the trend may have been different for recipients with smaller position sizes.

In total, addresses making full sales of their ZK were responsible for $346.7 million in sell pressure, while partial sellers were behind $149.2 million in sales.

According to CoinGecko, ZK’s current market cap is $751 million. The token’s price has been down 16.6% in the last 24 hours, reaching roughly $1 billion in trading volume.

Selloffs are hardly unusual for a newly airdropped token. Starknet, a rival Ethereum layer 2 network, saw its token plummet 49% in value within a day of its February airdrop. The selloff also comes amid a broader crypto market pullback, with Bitcoin and Ethereum down 2.9% and 2.78% in the past 24 hours.

The largest single ZKsync airdrop recipient claimed over 8.3 million ZK, which is worth $1.7 million at writing time. A vast cohort of smaller recipients claimed close to 53,000 tokens, which are now worth roughly $10,600. The total airdrop distributed 3.675 billion ZK to early ZKsync users and adopters.

What Is ZKsync?

ZKsync is a layer 2 blockchain that uses zero-knowledge rollups to enable faster and cheaper Ethereum transactions while still benefitting from Ethereum’s economic security. Holders of ZK tokens may participate in the network’s governance, delegate their tokens, and be active members of the community.

While many early tokens went to network users, others went out to “contributors” – developers, researchers, communities, and companies.

The fully diluted market cap of ZKsync is 21 billion units, meaning 17% of tokens have hit the market so far.