Almost half of the top beneficiaries of ZKsync’s airdrop wasted no time in cashing in their governance tokens on the very first day. Nansen’s data reveals that a staggering 41% of the 10,000 wallets that received full allocations from ZKsync, Ethereum’s zero-knowledge (ZK) scaling protocol, quickly sold off their tokens. More than 4,160 addresses hit the sell button right after claiming their ZK tokens. About 30% of the top recipients sold some of their allocations, while less than 29% are still holding on to their tokens post-airdrop.
As reported earlier, the selling frenzy of ZK tokens led to a drop in the coin’s price, which was trading at around 20 cents at the time of publication. Nansen’s report indicates that airdrop claimants have offloaded nearly $500 million worth of ZK in the open market, even though the top recipients make up only a small portion of the total distribution plan.
ZKsync’s distribution plan includes sharing 3.67 billion tokens with 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 their airdrop allocation.
The issue of Sybil farming has been highlighted as a major concern surrounding ZKsync’s airdrop. Sybil farming occurs when a single user creates numerous wallets to maximize protocol activity and claim airdrop tokens, only to dump them on exchanges later. While some protocols like LayerZero have taken steps to combat Sybil participation, ZKsync has taken a different approach.
Despite reports of Sybil addresses receiving significant amounts of ZK tokens, it remains unclear whether Sybil farmers are responsible for the token dumps. Matter Labs, the developer behind ZKsync, appears unfazed by the activity. CEO Alex Gluchowski has stated that more tokens entering the market means increased availability for genuine governance participants.
In conclusion, ZKsync’s airdrop has sparked significant activity among recipients, with a considerable portion opting to sell off their tokens early on. The impact of Sybil farming on the distribution of tokens remains a topic of discussion within the crypto community.