Jupiter Token experiences a 63% decrease following $700 million airdrop and erroneous pump strategy.
JUP, the native token of Jupiter, a decentralized exchange aggregator built on the Solana blockchain, experienced a significant crash shortly after being listed on centralized exchanges.
According to data from CoinMarketCap, the token’s price dropped by 63% to $0.5887 in the past 24 hours. When trading started, JUP was valued at $1.2707.
Notable trading platforms such as Binance, Bitfinex, and OKX listed the token and made it available for trading. Additionally, the Binance team announced that Binance Futures would be launching Jupiter futures. However, these efforts did not help JUP recover its price.
During the frenzy surrounding the JUP listing, traders mistakenly engaged in a pump and dump scheme involving the wrong token. Due to the similarity in tickers, traders started buying the incorrect token, and once they realized their mistake, the price began to plummet. The project’s website is no longer active.
In conjunction with the collapse in price, a massive distribution of JUP tokens worth $700 million took place. Jupiter’s plan involves distributing 40% of the 10 billion JUP tokens to members of the Jupiter community. The first stage includes withdrawing 1 billion JUP tokens to Solana user wallets.
The founder of Jupiter, known as Meow, commented on the token’s price collapse following the distribution. He explained that airdrop recipients suddenly had a large pool of tokens to sell, while potential buyers were deterred by the significant selling pressure from the airdrops. This caused potential buyers to refrain from participating.
Despite the price crash, Meow believes that the system is functioning well as it compels the team to set a reasonable price, prevents extreme price fluctuations, and instills confidence in early buyers, the team, and the community hodlers.
In other news, Jupiter tokens are expected to be released in January 2024 for Solana DeFi users.
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