PancakeSwap Announces Airdrop of 2.45 Million zkSync Tokens as Community Reward

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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July 5, 2024 17:21 EDT

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Participants are now able to take advantage of a new community reward program from leading multichain decentralized exchange PancakeSwap, which started July 5 at 10:30 a.m. UTC.

The program will distribute 2,452,128 zkSync (ZK) tokens to community members over one month, ending on August 5.

The airdrop was designed to show appreciation for the community’s support of PancakeSwap’s zkSync deployment since July 2023.

The airdrop’s launch is difficult to ignore, given its timing alongside allegations against zkSync’s developer, Matter Labs.

PancakeSwap’s ZK Token Airdrop Amid zkSync Controversy

PancakeSwap’s airdrop comes after the platform surpassed $3 billion in trading volume, $5 million in total value locked (TVL), and attracted over 1.9 million traders.

PANCAKESWAP TO AIRDROP 2.4 MILLION ZKSYNC (ZK) TOKENS: KEY DETAILS

– @PancakeSwap is set to reward its loyal community with an airdrop of 2,452,128 zkSync (ZK) tokens.

– This initiative reportedly recognizes ongoing and continued support since the deployment of zkSync… https://t.co/iqWoooUe3u pic.twitter.com/VKxyLI83eu

— BSCN (@BSCNews) July 5, 2024

The airdrop rewards PancakeSwap’s users and was intended to increase platform engagement, but its timing has drawn attention due to the ongoing controversy surrounding zkSync.

Zksync-internal cheat

In September, I discovered this issue and have been tracking it ever since.

I have published all the data I have gathered on GitHub and Mirror. The data includes on-chain hash values, addresses, ZKSync team members, and their actions to seek profits using…

— soEasy (@Easy17182589) June 18, 2024

Matter Labs recently faced accusations of “insider minting” related to its Libertas Omnibus NFTs. Blockchain research firm SoEasy on June 17 suggested improper distribution of NFTs to ineligible insiders.

However, Matter Labs has denied these allegations.

ZK Token Airdrop Eligibility and Market Impact

The zkSync token airdrop has also raised questions about its potential impact on the market. Eligibility for the airdrop extends to active users who have contributed through trading, liquidity provision, and participation in previous zkSync initiatives.

Future contributors who provide liquidity and trade on zkSync PancakeSwap will also be included to stimulate further platform growth. The airdrop is available to veCAKE holders and past contributors.

1/3 🪂 $ZK airdrop has landed

🔥PancakeSwap is airdropping 2.4 million $ZK tokens to the community

🤲Claim your share now https://t.co/TxdfKEi4EE pic.twitter.com/DmpTbMR8pW

— PancakeSwap v4｜ETHCC 🇧🇪 (@PancakeSwap) July 5, 2024

According to PancakeSwap, users can claim their ZK tokens by connecting their wallet to the PancakeSwap platform homepage and following the instructions. Any unclaimed tokens were redirected to PancakeSwap ecosystem development and community initiatives.

The ZK token has faced price fluctuations in recent weeks. Last month, it experienced a 5% drop following a $113 million token airdrop, and its price has been negatively impacted since its listing on major exchanges.

This announced airdrop follows a denied, rumored airdrop in March when PancakeSwap announced the launch of PancakeSwap V4 and initially reported a $3 million CAKE airdrop to celebrate the upgrade.

The PancakeSwap team later clarified that this information was false and planned to allocate $500,000 to a PancakeSwap Developer Program.

Despite a strong start to the year, PancakeSwap’s native token, CAKE, has faced headwinds. In February, the platform reported a total trading volume of $15.8 billion, an increase from January, with an average daily volume of $545.4 million.

However, while PancakeSwap has solidified its position as a leading decentralized exchange, CAKE’s price has notably declined. Since February, CAKE has dropped from $4 to $1.73, a decline exacerbated by a 45% drop in the past month alone.

The crypto community is now closely watching to see whether PancakeSwap’s airdrop will boost ZK’s price amid the token’s recent volatility and the ongoing zkSync controversy.