ZKsync token faces massive sell-off following launch

A report from Nansen on Tuesday revealed that the top 10,000 wallets that were airdropped ZKsync's newly launched ZK token have begun selling their holdings.

ZK top wallets experience huge sell-off amid market criticism

The price of ZK has dropped 34.5% since its inception after nearly half of the top wallets that received its airdrop on Monday sold all of their allocation.

Also read: Binance announces 10.5 million ZK giveaway for eligible users, ZK wipes out 18% value overnight

Data from on-chain analytics platform Nansen revealed that 41.1% of the top 10,000 addresses have sold their entire holdings, and 30.1% have sold or moved part of their holdings since the launch.

Only 28.8% of these wallets hold onto all their tokens. Although the data only accounts for the top 10,000 wallets, which is just 1.44% of the total 695,232 wallets that ZKsync made eligible for the airdrop.

Read more: Crypto community blasts zkSync ahead of airdrop launch

These wallet holders' actions have begun to attract the attention of several crypto community members, who previously criticized ZKsync's airdrop methods.

ZKsync initially faced a huge backlash after it announced that only 695K wallets would receive its ZK airdrop based on controversial eligibility criteria.

Data gathered by Matter Labs data scientist Landon Gingerich shows that following ZK's release, 80% of the wallets claimed the token out of 3.675 billion tokens that the protocol airdropped.

Also read: ZK ticker causes clash between Polyhedra and zkSync

Meanwhile, DLNews reported that ZKSync paid 0.5% of its token supply to the decentralized social media Lens protocol to build on its platform. On-chain data also shows Lens received about 5.6 million ZK tokens after its launch.

ZK is trading around 0.2064, 5% down on the day.