Solana: Jupiter (JUP) Price Tumbles Amid Controversy – Buy Now?
01 Febbraio 2024 - 5:30PM
NEWSBTC
On Wednesday (January 31), the highly anticipated Jupiter (JUP)
airdrop took place. Jupiter, a decentralized exchange aggregator
built on the Solana blockchain, has been making waves in the crypto
space lately, even surpassing Uniswap in terms of trading volume.
However, the airdrop, while initially boosting JUP’s value, has
been followed by controversy. Jupiter (JUP) Airdrop Stats Tom Wan,
a researcher at 21.co, the parent company of 21Shares, commented on
the magnitude of the airdrop, stating, “It was one of the largest
airdrops on Solana ever, with over 440,000 addresses claiming 622
million JUP tokens, valued at approximately $3.6 billion.
Remarkably, 54% of eligible wallets have yet to claim their JUP,
leaving approximately 378 million JUP unclaimed.” 1/ One of the
largest Airdrop on @solana is live Over 440k Addresses claimed 622M
($3.6B) JUP token from @JupiterExchange. 54% of the eligible
wallets haven't claimed JUP yet, and there are ~378M unclaimed JUP
pic.twitter.com/7my3PLTo5I — Tom Wan (@tomwanhh) February 1, 2024
Wan went on to provide insights into the distribution of JUP
tokens, revealing that a majority of claimants received less than
1,000 JUP. He stated, “59% of claimants, or 261,000 wallets,
received only 200 JUP, while approximately 1,500 wallets received
between 100,000 and 200,000 JUP. Notably, those who received higher
airdrop amounts appear to be holding onto their JUP tokens, with
72% of recipients of less than 1000 JUP having already sold their
tokens.” Related Reading: Why Solana Beats Ethereum In This Bull
Cycle: Crypto Expert Regarding the Solana network itself, it
continued to perform exceptionally well during the airdrop event.
Solana handled 13% more transactions than in the past 90 days,
maintaining a block time of approximately 400 milliseconds. The
network also experienced a surge in active addresses, reaching a
one-year high on the day of the JUP airdrop. However, Solana
handled this increased activity perfectly. Despite the average
transaction fee doubling compared to the previous day, it remains
relatively low at around $0.017 per transaction. Additionally, the
minimum priority fee on the Solana network remained at 0,
indicating that the network still accommodated users’ transactions
without significant fees. JUP Price Quadruples, Then Plunges On
Controversy Initially, the JUP token’s price surged to over $2 on
some exchanges, such as KuCoin, quadrupling its value. However,
this enthusiasm was short-lived due to controversial actions taken
by the Jupiter team. It allegedly conducted a large-scale public
token sale, sparking outrage, fear, uncertainty, and doubt (FUD)
within the crypto community. Related Reading: Solana (SOL) Bulls
Imminent: Analyst Predicts Price Surge To $113 Among others, crypto
analyst Lord Ashdrake expressed his concerns, stating, “We
literally bought into an OpenMarket sale for JUP, akin to an IPO on
the stock market.” Similarly, Adam Cochran, a partner at CEHV,
criticized the team’s actions, highlighting that they retained a
significant portion of tokens without a lockup period. So [Jupiter]
gave 50% of token to themselves, it was not their first token, used
their own platform which also paid self, pulled liquidity from the
pool in cash, gave a cut to the dev team. So cash out $30m day one
with no lockup, and still own 50%? Shitty antics throwing away
reputation of what could have been a *very* successful business
long term. In response to the criticism, Jupiter co-founder Meow
defended the team’s decisions, clarifying that they only sold 250
million JUP tokens and reduced the sales ratio from 20% to 2.5%.
Meow emphasized the team’s willingness to experiment with new
concepts and prioritize the community’s interests. Meow stated, “We
are doing so to figure out a good open market dynamic that
prioritizes users, does not wreck early launch pool buyers, and
does not demoralize community hodlers. We think this system is a
good one because it compels the team to price it reasonably and
strengthens alignment between early buyers, the team, and community
hodlers.” Hi all, i got advice in discord to be even more clear so
let me say it simply: If i did an OTC deal or a regular IDO, we
would have gotten a similar amount if not more without any of the
confusion that comes with pioneering new concepts and absolutely
zero risk. Trust me, that… — meow 🥧 (@weremeow) February 1, 2024
Buy Or Sell Jupiter (JUP) Now? Despite the controversy, Jupiter
presented impressive statistics for January, including being the
most-used trading platform in DeFi, having a direct 80% organic
volume, and being the most-used protocol on the Solana network. The
project also ranked among the top 2 by volume on CoinGecko and was
one of the leading perpetual platforms with $1.4 billion in volume
over the past week. So, while the Jupiter (JUP) airdrop may have
faced initial controversy, the project is still showcasing
remarkable potential. As it positions itself as a direct competitor
to Ethereum’s Uniswap, the history of Uniswap’s UNI token price may
suggest JUP’s promising future, provided it navigates its early
tokenomics challenges effectively. At press time, JUP traded at
$0.6118 on Binance. Featured image from Kraken Blog, chart from
TradingView.com
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