Solana-Based Jupiter (JUP) Token Slumps 70% On Debut After $700 Million Airdrop

Jupiter (JUP) slumped as a lot as 70% on its debut after conducting one of many largest airdrops on the Solana blockchain, with round $700 million price of JUP tokens distributed to just about a million wallets.

The token began buying and selling yesterday at round $0.41 and, inside just a few hours, surged to $2 earlier than its hunch. It’s since pared losses and is down 14% as of 1 p.m. EST to commerce at $0.5877. Its market cap stands at $793 million.

Buying and selling quantity was an astronomical $1.37 billion, in accordance with CoinMarketCap.

An Ethereum-based token with the identical ticker additionally jumped by over 400% yesterday briefly earlier than dumping as buyers seemingly mistook it for SOL’s JUP.

JUP Token Airdrop

JUP allotted one billion tokens for its preliminary airdrop. Knowledge from Dune exhibits 625 million JUP tokens have been claimed to this point with 47% of the eligible pockets addresses having claimed their share of the airdrop. About 20% of the airdrop tokens have been claimed inside the first hour.

The tokens will go in the direction of early customers of the Jupiter protocol.

This airdrop shouldn’t be the final for the Jupiter protocol. It has allotted a further 3 billion JUP tokens for future airdrops concentrating on new customers. The protocol has but to announce the timing of future drops.

Techniques Maintain Up

Given the scale of the airdrop, there have been preliminary considerations that it might wreak havoc on Jupiter techniques and trigger downtime on the Solana blockchain. However the community has been hailed for sustaining a 100% uptime.

🚨 BREAKING: Solana maintains 100% uptime throughout the peak site visitors of $JUP Jupiter airdrop declare and buying and selling. pic.twitter.com/3tWaOX9yqU

— SolanaFloor | Powered by Step Finance (@SolanaFloor) January 31, 2024

The crypto neighborhood has additionally praised the charge mechanism on the Solana blockchain. Regardless of the elevated consumer quantity and demand, fuel charges remained low.

Right here is the charge I simply paid for a transaction on the Solana community. Even with the large inflow of customers claiming their JUP token airdrop, there are not any fuel spikes. This actually appears like the long run. pic.twitter.com/sRFVV0g3pu

— SmartecVitalik (@Smartecio) January 31, 2024

However the launch was not with out some minor points. Customers utilizing third-party apps like Solflare and Phantom reported issues claiming the tokens throughout the first half-hour.

The issue stemmed from RPC nodes, which hyperlink consumer wallets and the blockchain. The difficulty was not current on the Solana base layer.

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