ZkSync, an Ethereum Zero-Knowledge Layer-2 scaling solution, has been transparent about its new token. Last week, the announcement of the ZK token airdrop project was met with backlash from investors and the crypto community.
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Following the backlash, crypto exchange Binance announced that it would list ZK and offer a new distribution system to address user concerns. Since its launch, ZK has dropped more than 20%.
ZkSync Airdrop Drama
On June 11, ZK Nation announced the upcoming launch and airdrop of the zkSync token. More than 3.6 billion ZK tokens can be claimed by 695,000 eligible addresses on Monday.
However, the distribution left many long-term users dissatisfied with the share of tokens they received. A few investors expressed disappointment after receiving a lower share than users with less volume or activity. Some customers shared that they were not eligible for the airdrop despite meeting the criteria.
Similarly, various high-profile projects built on zkSync have announced that they are forming an alliance after not being included in the airdrop. Element and zkApes revealed that they are not getting any tokens despite generating up to $20 million in network gas revenue.
The backlash intensified when users expressed concern about the lack of anti-Synil filtering. The project stated in the airdrop announcement their decision not to use the anti-Sybil method. The ZkSync team explained that it is considered an “imperfect method.”
Online reports say that 80 million ZK tokens are in the hands of 47,000 Sybil addresses.
Over the weekend, ZK Nation addressed the criticism and concerns of users. The team answered some of the most frequently asked questions, including the release of zkSync-built projects, user eligibility, and Sybil adoption.
In the post, the team chose an “alternative approach” to benefit organic users. As described, aggressive Sybil filtering will remove “nonsensical Sybils” while falsely flagging genuine users. Additionally, filtering will miss many bots and professional Sybil accounts.
As a result, Sybil’s airdrop discovery was designed to “reduce the level of false positives.” The team explained that “the vast majority of Sybil accounts that pass through the filter” are “conscious transactions.”
Binance Offers New Token Distribution
On Sunday, Binance announced that it will list ZK on June 17. The exchange also revealed that it will provide a distribution system for ZK tokens “due to ongoing concerns.”
According to the post, Binance will distribute 10.5 million ZK tokens to approximately 52,000 users who meet the criteria. Requirements include users initiating at least 50 transactions in the ZkSync Era between February 2023 and March 2024 and performing transactions in seven different months. Additionally, the claim address must not be eligible for the ZK Nation airdrop.
The ZK token started trading at $0.3 and reached the $0.32 mark, according to CoinGecko data. In the following hours, the price returned to the $0.24 price range, a 21% drop from its launch price. However, the token’s market capitalization sits at $900 billion and its fully diluted value (FDV) is $5.1 billion.
The first game received mixed reactions from the public. Some users highlighted how customer dissatisfaction could be partially responsible for the price drop. “Projects often forget that customer satisfaction is essential for their product or innovation to succeed,” said one X user.
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In the end, most users remain unfazed by the price drop due to the normal market operation and airdrop recipients selling their tokens. Customers consider ZK to be reputable and “the best opportunity in the long run.”
Featured image from Unsplash.com, Chart from TradingView.com
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