Summary of Key Points:
- ZKsync’s airdrop resulted in nearly half of the top recipients selling their governance tokens immediately.
- Over 41% of wallets sold their full ZK tokens allocation received from ZKsync.
- The sell-offs caused a decrease in the coin’s price, with a significant amount sold in the open market.
- Concerns were raised about Sybil farming and token dumps post-airdrop.
- ZKsync developer Matter Labs seemed unfazed by the activity, viewing it as a way to increase token availability for genuine participants.
ZKsync’s Airdrop: Sell-Off Trends
Following ZKsync’s airdrop, data from Nansen revealed that a significant portion of recipients opted to liquidate their governance tokens immediately. A notable 41% of wallets sold their full allocation of ZK tokens received from the protocol. This influx of sell-offs contributed to a drop in the coin’s price, with around $500 million worth of tokens being sold in the open market post-airdrop.
Sybil Farming Concerns and Responses
One of the major issues highlighted post-airdrop was the lack of robust Sybil filtering, leading to concerns about farming activities. While protocols like LayerZero have taken steps to combat Sybil participation, ZKsync has approached the issue differently. Despite blacklisting several Sybil addresses, there remain uncertainties about the extent of Sybil farmers’ involvement in token dumps. Matter Labs, the developer behind ZKsync, displayed a nonchalant attitude towards the situation, emphasizing the increased availability of ZK coins for genuine participants as a positive outcome.
Community Response and Developer Perspectives
The crypto community has expressed discontent with the prevalence of Sybil farming practices post-airdrop. While some protocols enforce stricter measures, ZKsync’s response has been more relaxed, attributing the increased token availability to genuine participants as a positive outcome. Matter Labs’ CEO, Alex Gluchowski, remains undeterred by the sell-offs, emphasizing the potential benefits of circulating more ZK coins in the market.
