Nearly half of the top recipients of ZKsync’s airdrop liquidate the governance tokens on day one.
Data from Nansen shows that over 41% of 10,000 wallets sold full allocations received from Ethereum scaling zero-knowledge (ZK) protocol, ZKsync.
According to the analytics firm, more than 4,160 addresses hit sell after claiming the ZK token. Around 30% of top recipients sold partial allocations, and less than 29% of claimers still hold tokens after the airdrop.
As crypto.news previously reported, ZK token sell-offs caused a % drop in the coin’s price, which traded around 20 cents at press time. Nansen reported that airdrop claimants have sold almost $500 million worth of ZK in the open market, although the top recipients compromise a fraction of the total distribution plan.
ZKsync plans to share 3.67 billion tokens with 695,232 addresses, meaning that the top 10,000 wallets will receive only 1.44% of the allocation. As of June 17, less than half the eligible wallets had claimed under 50% of the airdrop.
ZKsync ZK Sellers: Are they Sybil Farmers?
cited a lackluster Sybil filtering as the most significant issue that was associated to ZKsync’s airdrop. Sybil airdrop mining occurs when one user uses hundreds or thousands of wallets in order to accumulate protocol activity.
The goal is to collect as many tokens from the airdrop as possible that would otherwise have gone to wallets for single users and then dump them on exchanges after they appear in the token list.
The crypto community has long been against the practice. ZKsync has taken a different approach to Sybil. While protocols such as LayerZero are doubling down on preventing Sybil participation.
Analysts noticed that some Sybil addresses which were blacklisted from LayerZero airdrops received thousands of ZK Tokens. A Nansen representative, however, told crypto.news it was unclear whether Sybil farmers were primarily behind token dumps.
Matter Labs, the developer of ZKsync, seems to be unconcerned by this activity. Alex Gluchowski is the CEO of Matter Labs. He reportedly stated that more tokens being airdropped into open markets mean more ZK coins will be available to government participants.
