As a researcher with experience in blockchain analytics, I find the high sell-off rate of ZKsync’s airdrop recipients concerning. The data from Nansen showing over 41% of wallets selling their full allocations raises questions about the intentions behind these transactions.
Nearly half of the top recipients of ZKsync’s airdrop liquidate the governance tokens on day one.
Approximately 4,121 out of the 10,000 Ethereum wallets that purchased in full, as indicated by data from Nansen, interacted with ZKSync, an Ethereum scaling zero-knowledge protocol.
As an analyst, I’ve examined the data from the analytics firm, revealing that over 4,160 unique addresses have sold their ZK tokens following the airdrop event. Approximately 30% of these top token recipients chose to sell partial allocations, while around 29% of the claimers no longer hold any ZK tokens in their wallets post-airdrop.
Previously reported by crypto.news, the selling of ZK tokens led to a percentage decrease in the coin’s price, which was approximately 20 cents at the time of publication. According to Nansen, over $500 million worth of ZK has been sold on the open market by airdrop claimants. However, it’s important to note that only a small portion of the total distribution plan’s recipients have engaged in this selling activity.
Approximately 3.67 billion tokens from ZKsync are intended to be distributed among 695,232 addresses. This equates to each of the top 10,000 wallets receiving just 1.44% of the total allocation. As of June 17th, fewer than half of the eligible wallets have claimed less than 50% of the airdrop.
Are ZKsync ZK sellers Sybil farmers?
As a researcher, I’ve identified that Sybil filtering, which was performing lackluster during ZKsync’s airdrop, is a significant concern. The phenomenon known as Sybil airdrop farming arises when a single user employs hundreds or even thousands of wallets to accumulate protocol activity.
The aim is to amass a large number of tokens from the airdrop that were originally intended for individual wallets, and subsequently sell them on crypto exchanges once the token becomes listed.
Members of the cryptocurrency community have frequently expressed their concerns about this issue. In contrast to initiatives such as LayerZero that aim to minimize the impact of Sybil attacks through increased vigilance, ZKsync has chosen an alternate strategy.
Experts observed that numerous Sybil addresses, which were barred from participating in LayerZero’s airdrop, amassed large quantities of ZK tokens. Nevertheless, Nansen’s spokesperson shared with crypto.news that it was uncertain if Sybil farmers primarily contributed to the token sell-offs.
As an analyst, I’ve come across the situation where ZKsync developer Matter Labs appears unfazed by the recent surge in activity. According to reports, their CEO, Alex Gluchowski, views the influx of airdropped tokens into open markets as a positive sign. He believes that more circulating ZK coins equates to greater accessibility for genuine government participants.
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2024-06-18 19:34