The top 41% ZKsync Airdrop recipients are selling out

Nearly half the recipients of ZKsync airdrop’s top tokens liquidate their governance tokens within the first day. 

Nansen data shows ZKsync, the Ethereum-based protocol for zero-knowledge scaling (ZK), has seen over 40% of its allocations purchased. 

According to analytics, over 4,160 addresses sold tokens after receiving the ZK token. Around 30% top recipients have sold their partial allocations. Less than 29% claimants still own tokens following the airdrop. 

Crypto.news has previously been a source of information reportedZK token sales caused the price of ZK to drop by %. The coin was trading at around 20 cents during press time. Nansen reports that ZK airdrop claimants sold nearly $500 million in ZK on the open market. However, the biggest recipients only make up a small fraction of total distribution.

ZKsync will share 3,67 billion tokens to 695,232 wallets, which means that only the top 10,000 addresses will get 1.44%. By June 17th, less than 50% of eligible wallets have received their allocation. claimed Under 50% of airdrops. 

ZKsync ZKsellers are Sybil farmers.

The lack of Sybil filters was identified as the most significant issue associated ZKsync airdrop is a great way to get started. Sybil airdrop farm occurs when one user uses hundreds, or thousands of wallets in order to accumulate protocol activity.

Tokens are collected from an airdrop and placed in single-user wallets. They will then be sold on cryptocurrency exchanges once they reach the top of the lists.

The crypto community has long complained about the practice. Crypto community members have long lamented the practice. LayerZero ZKsync, which has been doubling down to stop Sybil’s participation, took a completely different approach. 

Analysts have noted that several Sybil address blacklisted for LayerZero’s airdrop, received thousands ZK tokens. A Nansen rep told crypto.news it was unclear whether Sybil farmers are primarily behind token dumps. 

Matter Labs’ ZKsync appears unperturbed by these activities. Alex Gluchowski reportedly claimed that the firm’s CEO said airdropped coins flowing into open market means there are more ZK coins available to real government participants.