Solana: Jupiter (JUP) Value Tumbles Amid Controversy

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On Wednesday (January 31), the extremely anticipated Jupiter (JUP) airdrop befell. Jupiter, a decentralized alternate aggregator constructed on the Solana blockchain, has been making waves within the crypto house these days, even surpassing Uniswap when it comes to buying and selling quantity. Nonetheless, the airdrop, whereas initially boosting JUP’s worth, has been adopted by controversy.
Jupiter (JUP) Airdrop Stats
Tom Wan, a researcher at 21.co, the guardian firm of 21Shares, commented on the magnitude of the airdrop, stating, “It was one of many largest airdrops on Solana ever, with over 440,000 addresses claiming 622 million JUP tokens, valued at roughly $3.6 billion. Remarkably, 54% of eligible wallets have but to assert their JUP, leaving roughly 378 million JUP unclaimed.”

1/ One of many largest Airdrop on @solana is reside
Over 440k Addresses claimed 622M ($3.6B) JUP token from @JupiterExchange. 54% of the eligible wallets have not claimed JUP but, and there are ~378M unclaimed JUP pic.twitter.com/7my3PLTo5I
— Tom Wan (@tomwanhh) February 1, 2024

Wan went on to offer insights into the distribution of JUP tokens, revealing {that a} majority of claimants acquired lower than 1,000 JUP. He said, “59% of claimants, or 261,000 wallets, acquired solely 200 JUP, whereas roughly 1,500 wallets acquired between 100,000 and 200,000 JUP. Notably, those that acquired greater airdrop quantities look like holding onto their JUP tokens, with 72% of recipients of lower than 1000 JUP having already offered their tokens.”

Relating to the Solana community itself, it continued to carry out exceptionally properly through the airdrop occasion. Solana dealt with 13% extra transactions than previously 90 days, sustaining a block time of roughly 400 milliseconds. The community additionally skilled a surge in energetic addresses, reaching a one-year excessive on the day of the JUP airdrop. Nonetheless, Solana dealt with this elevated exercise completely.
Regardless of the common transaction payment doubling in comparison with the day before today, it stays comparatively low at round $0.017 per transaction. Moreover, the minimal precedence payment on the Solana community remained at 0, indicating that the community nonetheless accommodated customers’ transactions with out vital charges.
JUP Value Quadruples, Then Plunges On Controversy
Initially, the JUP token’s worth surged to over $2 on some exchanges, similar to KuCoin, quadrupling its worth. Nonetheless, this enthusiasm was short-lived because of controversial actions taken by the Jupiter crew. It allegedly performed a large-scale public token sale, sparking outrage, concern, uncertainty, and doubt (FUD) throughout the crypto neighborhood.

Amongst others, crypto analyst Lord Ashdrake expressed his considerations, stating, “We actually purchased into an OpenMarket sale for JUP, akin to an IPO on the inventory market.” Equally, Adam Cochran, a associate at CEHV, criticized the crew’s actions, highlighting that they retained a good portion of tokens and not using a lockup interval.
So [Jupiter] gave 50% of token to themselves, it was not their first token, used their very own platform which additionally paid self, pulled liquidity from the pool in money, gave a lower to the dev crew. So money out $30m day one with no lockup, and nonetheless personal 50%? Shitty antics throwing away fame of what might have been a *very* profitable enterprise long run.
In response to the criticism, Jupiter co-founder Meow defended the crew’s selections, clarifying that they solely offered 250 million JUP tokens and decreased the gross sales ratio from 20% to 2.5%. Meow emphasised the crew’s willingness to experiment with new ideas and prioritize the neighborhood’s pursuits.
Meow said, “We’re doing so to determine a very good open market dynamic that prioritizes customers, doesn’t wreck early launch pool patrons, and doesn’t demoralize neighborhood hodlers. We predict this method is an efficient one as a result of it compels the crew to cost it moderately and strengthens alignment between early patrons, the crew, and neighborhood hodlers.”

Hello all, i bought recommendation in discord to be much more clear so let me say it merely:
If i did an OTC deal or a daily IDO, we might have gotten an identical quantity if no more with none of the confusion that comes with pioneering new ideas and completely zero threat. Belief me, that…
— meow 🥧 (@weremeow) February 1, 2024

Purchase Or Promote Jupiter (JUP) Now?
Regardless of the controversy, Jupiter introduced spectacular statistics for January, together with being the most-used buying and selling platform in DeFi, having a direct 80% natural quantity, and being the most-used protocol on the Solana community. The mission additionally ranked among the many high 2 by quantity on CoinGecko and was one of many main perpetual platforms with $1.4 billion in quantity over the previous week.
So, whereas the Jupiter (JUP) airdrop could have confronted preliminary controversy, the mission continues to be showcasing outstanding potential. Because it positions itself as a direct competitor to Ethereum’s Uniswap, the historical past of Uniswap’s UNI token worth could counsel JUP’s promising future, offered it navigates its early tokenomics challenges successfully.
At press time, JUP traded at $0.6118 on Binance.
JUP worth chart (Binance), 15-min chart | Supply: JUPUSDT on TradingView.com
Featured picture from Kraken Weblog, chart from TradingView.com

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