Nansen Reports Majority of ZKsync Airdrop Recipients in Top 41 Choose to Sell
A significant portion of the top recipients of the ZKsync airdrop wasted no time in selling off their governance tokens immediately.
Information from Nansen reveals that over 41% of the 10,000 wallets that received full allocations from ZKsync, an Ethereum scaling zero-knowledge (ZK) protocol, chose to sell off their tokens right after claiming them. More than 4,160 addresses opted to sell after claiming the ZK token, with approximately 30% selling partial allocations and less than 29% holding onto their tokens post-airdrop.
This sell-off of ZK tokens by recipients contributed to a decrease in the coin’s price, which was trading at around 20 cents at the time of reporting. Nansen’s data shows that airdrop claimants have collectively sold nearly $500 million worth of ZK tokens in the open market, although the top recipients constitute only a small fraction of the total distribution plan.
ZKsync plans to distribute 3.67 billion tokens among 695,232 addresses, with the top 10,000 wallets receiving just 1.44% of the allocation. As of June 17, less than half of the eligible wallets had claimed less than 50% of the airdrop allocation.
Concerns surrounding Sybil farming, particularly in relation to ZKsync’s airdrop, have been raised. Sybil farming involves a single user utilizing multiple wallets to accumulate protocol rewards, with the intention of dumping them on cryptocurrency exchanges later. While protocols like LayerZero have implemented measures to combat Sybil participation, ZKsync has taken a different approach.
Despite reports of Sybil addresses receiving substantial amounts of ZK tokens, it remains uncertain if Sybil farmers are primarily responsible for the token dumps. Matter Labs, the developer behind ZKsync, appears unperturbed by the situation. CEO Alex Gluchowski has expressed that an increase in airdropped tokens circulating in the market benefits genuine participants in the governance process.
In conclusion, the ZKsync airdrop has sparked discussions around token distribution, sell-offs, and the impact of Sybil farming on the cryptocurrency ecosystem.
