This text discusses issues surrounding the zkSync community, including allegations of unfair exclusion from airdrops and favoritism, as well as price predictions for zkSync’s future. Users have expressed disappointment after working on the platform for a year and finding their wallets ineligible for token allocations. Allegations of insider trading by a zkSync developer further complicated matters, suggesting favoritism and exploitation of insider knowledge.
As a researcher studying the cryptocurrency market, I’ve been investigating the recent price movement of zkSync. After its successful airdrop event, zkSync experienced a significant drop in price, decreasing by approximately 39%. Several factors may have contributed to this price decrease.
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As a researcher studying the cryptocurrency market, I discovered an intriguing event on June 17: the distribution of zkSync (ZK) tokens through an airdrop. This announcement generated considerable excitement within the community. However, upon examining blockchain data, it appeared that approximately half of the major wallet recipients promptly sold their entire allotment of newly acquired zkSync tokens post-distribution.
I’ve experienced a significant setback in my crypto investment as the massive sell-off caused the token’s price to plummet by nearly 40%, from its initial price of $0.3098 down to a low of $0.1904 on June 18. Fortunately, there has been some recovery since then, with the token trading around $0.2215 as of June 19.
To gain a clearer perspective on this matter, could you please elaborate on the specific event that took place and its potential implications for zkSync’s pricing? Let’s explore the finer points of the situation in order to deepen our understanding.
What exactly happened?
As a crypto investor, I’m thrilled to share that on June 11, zkSync officially announced the highly anticipated airdrop of their ZK token. This exciting event aimed to distribute a generous 17.5% of the total 21 billion ZK token supply to approximately 695,000 eligible wallets, set for distribution on June 17. Furthermore, an impressive 33.3% of the tokens were reserved for the project’s team and early investors as a token of appreciation for their invaluable support and commitment to the zkSync ecosystem from its earliest stages.
As a crypto investor, I’m excited to introduce you to the ZK Token. Here’s how you can get started:
— ZK Nation (@TheZKNation) June 11, 2024
As an analyst, I can tell you that the crypto community was buzzing with anticipation upon hearing the initial announcement. Those who qualified stood to receive up to 100,000 ZK tokens, hinging on specific requirements that were evaluated prior to the March 25th snapshot.
Upon launching the airdrop, I noticed a surge in criticisms from long-standing and engaged community members. They complained about receiving smaller token quantities than expected, whereas less active wallets seemed to have been awarded more tokens.
Several high-profile initiatives utilizing zkSync, such as the NFT project zkApes, announced that they hadn’t obtained any airdrops, despite having paid massive gas fees to the network. This revelation added fuel to the already tense situation.
Last week, we paid out a substantial fee of $15 million in gas costs to Ethereum layer 2 solution, @zksync. Regrettably, no airdrop was granted to us in compensation. Quite disappointing! #zk #zksync
— zkApes | Build on zkSync (@zk_apes) June 12, 2024
The group of projects came together to put pressure on zkSync’s team, advocating for a more equitable distribution of tokens, with an emphasis on transparency and fairness in the process.
As a researcher studying the recent cryptocurrency event, I’ve uncovered some intriguing findings regarding the aftermath of the live airdrop on June 17, despite facing criticism. According to data from Nansen, a reputable blockchain analysis firm, approximately 41% of monitored addresses liquidated their entire zkSync airdrop tokens, while another 29.2% sold a portion of their holdings. The resulting mass sell-off precipitated a significant price drop for the token.
Some critics contended that the selection process for the airdrop was insufficient in deterring Sybil attacks, which involve one entity controlling multiple wallets to accrue tokens and subsequently flood markets with these tokens upon exchange listings.
In response to the criticisms levied against them, zkSync argued for their methodology. They emphasized the importance of incentivizing authentic contributors while preserving a level playing field and upholding honesty.
ZKsync has never encouraged people to farm, but rather worked diligently to foster a community of individuals who are deeply passionate about the goals of ZK Credo and the immense possibilities of Zero-Knowledge (ZK) technology. In virtually every blog post, tweet, and public announcement from ZKsync, you’ll find a focus on our long-term mission.
— ZK Nation (@TheZKNation) June 15, 2024
Controversy, public reaction, and skepticism
As a researcher studying the cryptocurrency scene, I’ve come across the zkSync airdrop, an event intended to be a joyful occasion, acknowledging the commitment of long-term users and initial backers. Regrettably, the outcome has been quite the opposite of festive.
Mudit Gupta, the Chief Information Security Officer at Polygon (MATIC) Labs, was one of the earliest voices raising concerns. He highlighted the apparent inadequacy of Sybil filtering, a mechanism that enables individuals to manipulate multiple wallets and amass larger airdrop rewards.
The zkSync airdrop has been released, marking what might be the most accessible and widely farmed event in history. With minimal Sybil filtering apparent, those who met the requirements could have significantly boosted their holdings. This incident underscores the importance of initiatives like LayerZero’s efforts to implement effective Sybil filtering.
— Mudit Gupta (@Mudit__Gupta) June 11, 2024
In agreement with Adam Cochran, partner at Cinneamhain Ventures, I observe that meeting the conditions for obtaining the airdrop appeared straightforward for those attempting to game the system. However, for genuine users navigating the still developing ecosystem of zkSync, these requirements could have remained elusive.
As a researcher examining the zkSync airdrop, I must admit my admiration for the team behind it. However, from a Sybil attack standpoint, I found some areas that seemed less than optimally planned.
— Adam Cochran (adamscochran.eth) (@adamscochran) June 11, 2024
As a researcher studying the recent cryptocurrency event, I observed a strong response from the community following the announcement of the airdrop. Anton ProfiT, a well-known figure within our community, clearly defined the eligibility requirements: engaging with smart contracts, executing transactions through Paymaster, and possessing Omnibus NFTs. However, despite adhering to these conditions, numerous users were left disappointed upon discovering their ineligibility for the airdrop.
🚨Today the @zksync team announced an airdrop distribution and a story about what exactly this distribution will be for.
✅ Criteria:
📍You are an active user and hold liquidity in some projects (pools, lendigs)
📍Your wallet has been active on the ZkSync Era network for more…— Anton ProfiT (@AntonProfiT) June 11, 2024
Profit expressed his concern that the zkSync team may have committed errors during the distribution procedure, and requested a chance to contest the outcome. This sentiment echoed with numerous members of the community who felt left out.
Many individuals who have spent a year using zkSync reported feeling let down when they discovered their wallets were no longer eligible.
Additional complexities arose due to accusations of bias. It was brought up by a different user, Nonzee, that they had found evidence suggesting a zkSync team member managed no less than 47 wallets. This individual reportedly obtained a significant amount of tokens through intricate relationships between these wallets.
According to Nonzee’s research, the developer took advantage of inside information to secure maximum rewards at the expense of ordinary users, who received few or no allocations.
Users are asking for explanations as to why some wallets that met the eligibility requirements were not accepted.
zkSync price prediction: how will it fare further?
During a bull market’s peak, a cryptocurrency analyst estimates that zkSync’s price could fall between $0.80 and $1.40. In the current market scenario, zkSync may reach a fully diluted valuation (FDV) comparable to other L2 solutions, indicating a potential price range close to $0.40.
$ZK Price predictions and valuation models$ZK @zksync just launched their token today while airdropping 17.5% of their 21B total token supply to users of the network.
Considerations
🔹Raise –> @zksync ‘s latest valuation is $1.25B in a Series C round led by @blockchaincap and…— Defi_Mochi (@defi_mochi) June 17, 2024
In a less exuberant projection, zkSync’s market capitalization could reach 2-3 times its current private valuation, amounting to roughly $2.5 billion to $3.75 billion. Consequently, the estimated price per token would fall within the range of $0.11 and $0.17.
As a researcher, I’ve examined various data sources and applied technical analysis to projected potential price trends for zkSync over the upcoming years. Several algorithmic websites have shared their findings on this topic.
zkSync price prediction for 2024
According to the analysis conducted by CCN.com, the estimated price range for zkSync in 2024 is between $0.20 and $0.50. The mean value of this estimation is approximately $0.48. Alternatively, Digitalcoinprice projects a slightly higher value, placing the predicted price around $0.49 for zkSync by the year 2024.
zkSync price prediction for 2025
Moving forward to the year 2025, CCN.com anticipates that the minimum price for zkSync will be around $0.48, while the maximum could reach as high as $0.59. On average, the price is predicted to hover around $0.58. Digitalcoinprice shares a similar perspective, projecting a price of $0.59 for zkSync in 2025.
zkSync price prediction for 2030
As a crypto investor, I believe in the potential growth of zkSync by 2030. Based on the analysis from CCN.com, I see the ZK token reaching its maximum price at around $1.69, and the average price fluctuating near $1.64. Even if we consider a more modest prediction, the price could still be as high as $1.53. Digitalcoinprice shares my optimistic perspective, forecasting a zkSync coin price of $1.69 for the year 2030.
As a crypto investor, I believe that several aspects will significantly influence the future price of zkSync. First and foremost, how effectively the team addresses current controversies, such as the airdrop distribution and Sybil attack concerns, will have a profound impact on my zkSync price prediction. By addressing these issues in a transparent and satisfactory manner, they can build trust with the community and potentially boost the token’s value.
I’d like to remind you all that while my predictions are based on data analysis, the unpredictable nature of the crypto market makes them subject to change. It’s crucial for each investor to carry out their own research and consider multiple factors before making any investment decisions. And above all, never risk more than you’re prepared to lose.
FAQs
Is zkSync a good investment?
ZkSync holds promise but comes with risks. Following the airdrop buzz, numerous investors sold their tokens, leading to a significant price decrease. The success of this project hinges on addressing existing challenges and regaining user confidence. It’s crucial to take into account this volatility and conduct comprehensive research before making an investment decision.
Will zkSync go up or down?
As a analyst, I find predicting the price of zkSync to be a complex task given the recent market sell-offs and controversy surrounding the project. Some analysts are optimistic about its future, estimating potential prices ranging from $0.20 to $0.50 by 2024. Nevertheless, there is still a great deal of uncertainty, making it essential for us to keep a close eye on market trends and upcoming developments in order to make informed decisions.
Should I invest in zkSync?
Paraphrasing: The investment in zkSync involves significant risks but also offers potential big returns. Recent price declines and disputes serve as reminders of the importance of prudence. If you are convinced by the project’s future goals and can handle high market swings, it might be worth exploring further. Remember to thoroughly research and consider your own risk appetite before making a decision.
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2024-06-19 17:45