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LayerZero Completes Airdrop Snapshot for Upcoming ZRO Token Launch

TL;DR

  • LayerZero Labs completed its first airdrop snapshot for the ZRO token, setting up for its launch in early 2024.
  • Anticipation for ZRO is high, with trading on Hyperliquid indicating a potential valuation of about $17 billion.
  • Past issues with Sybil users exploiting airdrops highlight challenges faced in ensuring fair token distribution.

LayerZero Labs has completed the first airdrop snapshot for its native token, ZRO, as of May 1. 

This development is part of the preparatory steps for the ZRO token’s official launch, expected in the first half of 2024. The snapshot is designed to set the allocations for ZRO tokens to participants deemed eligible. The completion of the snapshot was confirmed through a post by LayerZero Labs on the social media platform X on May 2.

Market Response to ZRO Token

There is already noticeable trading activity around the ZRO token in anticipation of its launch. On Hyperliquid, a leading decentralized exchange for perpetual futures, a futures contract for ZRO is actively trading at a price of $8.4. This trading price implies a fully diluted market valuation of approximately $17 billion for the ZRO token upon its release.

The practice of Sybil users exploiting airdrops by using multiple cryptocurrency wallets to collect and then sell tokens has been a recurring issue. These actions typically aim to profit from the airdrop without any long-term commitment to the protocol, potentially affecting the stability of the token’s price after launch.

Previous Airdrop Complications

Other projects have encountered challenges similar to those faced by airdrop hunters. In February, an analysis of the Starknet airdrop eligibility list revealed that a significant portion of the addresses were linked to Sybil users. In March 2023, during the Arbitrum (ARB) airdrop, wallets associated with airdrop hunters amassed over $3.3 million worth of tokens, which also contributed to fluctuations in the token’s market price after the distribution. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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