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What led to zkSync’s significant 39% price decrease following the airdrop, and what are experts predicting for zkSync’s price in the upcoming months?
Overview
What actually occurred?
Controversy, public response, and doubt
zkSync price forecast: what lies ahead?
FAQs
zkSync (ZK) tokens were distributed through an airdrop on June 17, sparking initial excitement. However, data analysis on the blockchain revealed that almost half of the primary wallets that obtained the new zkSync token sold their entire allocation shortly after.
This widespread sell-off resulted in a sharp 39% drop in the token’s value, plummeting from its initial price of $0.3098 to a low of $0.1904 on June 18. As of June 19, the price has slightly recovered, hovering around $0.2215.
What exactly happened here? And how will this impact zkSync’s price predictions? Let’s explore the details to gain a better understanding of the situation.
What occurred?
zkSync announced the much-anticipated airdrop of the ZK token on June 11. This event aimed to distribute 17.5% of ZK’s 21 billion token supply to 695,000 eligible wallets on June 17. Additionally, 33.3% of the tokens were set aside for the project’s team and investors as a reward for early adopters and long-standing supporters.
The announcement initially generated significant excitement within the crypto community. Eligible users were promised up to 100,000 ZK tokens, depending on specific criteria met before a snapshot taken on March 25.
However, criticism began to surface shortly after the airdrop launch. Many loyal and active users reported receiving fewer tokens than they expected, while less active wallets received larger allocations.
The situation escalated further when several top-ranking projects built on zkSync, such as the NFT project zkApes, disclosed that they had not received any airdrops despite generating substantial gas fees for the network.
These projects formed a coalition to push zkSync’s team for a more equitable token distribution, demanding transparency and fairness.
Despite the backlash, the airdrop proceeded on June 17, leading to a significant sell-off. Data from blockchain analysis firm Nansen indicated that 41% of the monitored addresses sold their entire zkSync airdrop, while 29.2% sold some of their tokens. This massive sell-off resulted in a sharp decline in the token’s price.
Critics argued that the criteria used for the airdrop were insufficient in preventing Sybil attacks, where multiple wallets are controlled by a single user to accumulate tokens and then dump them after listing on exchanges.
Despite these criticisms, zkSync defended their approach, emphasizing rewarding genuine participants while upholding fairness and integrity.
Controversy, public response, and skepticism
The zkSync airdrop was intended to be a festive occasion, rewarding devoted users and early supporters. However, the aftermath has been anything but celebratory.
Mudit Gupta, Chief Information Security Officer (CISO) at Polygon (MATIC) Labs, was among the first to raise concerns. He highlighted the apparent lack of effective Sybil filtering, which enables individuals to exploit multiple wallets to maximize their airdrop rewards.
Adam Cochran, a partner at Cinneamhain Ventures, echoed these sentiments, noting that the criteria for receiving the airdrop were easy to meet for those gaming the system, yet could be missed by genuine users due to the early stage of zkSync’s ecosystem.
The community’s reaction was swift and vocal. Anton ProfiT, a prominent user, outlined the criteria for the airdrop, including interactions with smart contracts, transactions in Paymaster, and holding Omnibus NFTs. Despite meeting these criteria, many users found themselves ineligible for the airdrop.
ProfiT argued that the zkSync team likely made errors in the distribution process and called for an opportunity to appeal. His frustration resonated with many in the community who felt unjustly excluded.
Other users shared similar experiences, expressing disappointment after contributing to zkSync for a year and discovering their wallet was ineligible.
Adding to the complexity were allegations of favoritism. Nonzee, another user, claimed to have uncovered that a zkSync developer controlled 47 wallets, receiving a substantial token allocation through connections between wallets.
Nonzee’s findings suggested that the developer exploited insider information to maximize rewards, leaving regular users with minimal or zero allocations.
In summary, users are demanding transparency on why numerous eligible wallets were deemed ineligible and are seeking clarifications.
zkSync price forecast: what lies ahead?
During peak bull market conditions, a crypto analyst has set zkSync’s price prediction between $0.80 and $1.40. In the current market environment, zkSync could achieve a fully diluted valuation (FDV) similar to existing L2s, indicating a price range of around $0.40.
In a more conservative scenario, zkSync could reach 2-3 times its private valuation FDV, ranging from $2.5 billion to $3.75 billion. This could potentially place zkSync’s price forecast between $0.11 and $0.17.
Moreover, utilizing available data and technical analysis, various algorithmic websites have outlined potential price trajectories for zkSync in the upcoming years.
zkSync price forecast for 2024
Based on analysis from CCN.com, the zkSync price forecast for 2024 ranges from a minimum of $0.20 to a maximum of $0.50, with an average expected price of around $0.48. Digitalcoinprice offers a slightly higher estimate, suggesting a zkSync crypto price forecast for 2024 of around $0.49.
zkSync price forecast for 2025
Looking ahead to 2025, CCN.com predicts a minimum price of $0.48, with a potential maximum of $0.59, and an average price of approximately $0.58. Digitalcoinprice aligns with this projection, forecasting a price of $0.59 for zkSync in 2025.
zkSync price forecast for 2030
By 2030, zkSync’s price could experience further increases. According to CCN.com, the ZK token may reach a maximum level of $1.69, with the average price hovering around $1.64. Even in a more conservative scenario, the price could be $1.53. Digitalcoinprice supports this long-term bullish outlook, predicting the zkSync coin price forecast for 2030 to be $1.69.
Several factors will influence zkSync’s future price. The project’s success in addressing current controversies, such as the airdrop issues and Sybil attack concerns, will play a crucial role in shaping zkSync’s price forecast.
It’s important to note that while these predictions are data-driven, caution should be exercised due to the inherent volatility of the crypto market. It is advisable to conduct thorough research and consider various factors before making investment decisions. Remember, never invest more than you can afford to lose.
FAQs
Is zkSync a worthwhile investment?
zkSync has displayed potential, but it comes with significant risks. Following the airdrop excitement, many sold their tokens, leading to a substantial price decline. The project’s future hinges on resolving current challenges and gaining user confidence. It is essential to consider this volatility and conduct thorough research before investing.
Will zkSync’s price rise or fall?
Predicting zkSync’s price is complex due to recent sell-offs and controversy. Some analysts anticipate a recovery, with potential prices ranging from $0.20 to $0.50 in 2024. However, uncertainties remain, making it crucial to closely monitor market trends and project developments.
Should I invest in zkSync?
Investing in zkSync carries high risks and potential rewards. The recent price decrease and controversy underscore the need for caution. If you believe in the project’s long-term vision and are comfortable with high volatility, it may be worth considering. Always conduct your research and assess your risk tolerance before investing.
Disclosure: This article is for educational purposes only and does not constitute investment advice. The content and materials presented here are for informational purposes.
