Airdrop Farmer Earns Over $1 Million in Jupiter Tokens: Insider Trading or Expert Strategy?
Blockchain tracking company Lookonchain revealed that an airdrop farmer had received 1.85 million Jupiter tokens across 9,246 wallets.A Jupiter Airdrop Farmer earned a whopping $1.1 million by utilizing around 10,000 wallets after the token launch.
Brian Yue Last updated: February 1, 2024 04:22 EST | 4 min read
An airdrop farmer has made over $1 million in Jupiter tokens after creating nearly 10,000 Solana wallet addresses, according to a February 1 X post. Blockchain tracking firm Lookonchain revealed that the airdrop farmer had received 1.85 million Jupiter tokens through 9,246 wallets.
Airdrop Farmer Creates 1% of All Eligible Wallets
Following the airdrop, a portion of the received tokens, valued at over $1 million even after a 69% price decline, was sold on the Jupiter platform to generate profits. The user deposited approximately $77,000 in airdropped tokens on both Bybit and Mexc. According to Lookonchain, the airdrop farmer possessed 319,000 JUP, which were valued at $196,000 on-chain. This individual represents roughly 1% of the eligible wallets for Jupiter’s airdrop.
The revelation has generated controversy on X, with many users speculating that the farmer was an insider. “He is someone from the company of course,” commented user @Anseriin. “He knew what to do and when. It’s always the same pattern.”
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WEN and JUP Airdrops
Jupiter has rapidly gained popularity as one of the leading Solana DeFi protocols, especially after the recent launch of its decentralized exchange and two consecutive token distributions.
Jupiter users initially received the WEN memecoin as a nod to crypto culture and the creator of JUP, Weremeow. This token was inspired by a fractionalized NFT poem, serving as a stress test for an upcoming airdrop.
Jupiter then began distributing its native token, JUP. This initiative allocated $700 million in tokens to early supporters and users of the Solana DEX. The launch faced controversy, however, particularly regarding a seven-day period during which Weremeow and his team could sell 2.5% of JUP’s 10 billion token supply, but only if the price remained above 70 cents.
This approach raised concerns among users and airdrop recipients, who feared a potential major sell-off could undermine confidence in the project.
Jupiter’s native token is currently trading at $0.00584, according to CoinMarketCap.
Q&A:
Q: Is it legal to create multiple wallet addresses for airdrops? A: Creating multiple wallet addresses for airdrops is not illegal, but it does raise ethical questions. While it may be seen as a strategic move, excessive addresses can be seen as unfair to other participants who will receive fewer tokens.
Q: How common are airdrop farming strategies? A: Airdrop farming strategies are not uncommon in the crypto space. However, they usually involve smaller amounts of tokens, and making over $1 million in tokens through airdrops is quite rare.
Q: Can airdrop farming impact the overall market for a token? A: A significant sell-off by an airdrop farmer can potentially impact the market for a token, especially if they hold a substantial portion of the token supply. This can create volatility and undermine confidence in the project.
Q: What measures can be taken to prevent airdrop farming? A: To prevent airdrop farming, projects can implement stricter eligibility criteria, such as limiting the number of wallets per individual or implementing KYC (Know Your Customer) requirements. This can help ensure a more equitable distribution of tokens.
Future Outlook
The case of the airdrop farmer highlights both the opportunities and challenges faced by projects conducting airdrops. While airdrops are an effective way to distribute tokens and attract users, they can also be exploited by individuals seeking to maximize their profits.
In the future, it is likely that projects will implement stricter measures to prevent airdrop farming and ensure a fairer distribution of tokens. This may include KYC requirements, limits on the number of wallets per individual, or even innovative solutions such as proof-of-personhood protocols.
As the crypto industry continues to evolve, it is essential for projects to find a balance between rewarding early supporters and maintaining a level playing field for all participants.
References
- Coinbase Addresses Geth Dominance Concerns & Client Diversity
- Jupiter Price Prediction: Solana Airdrop Creates New Crypto Unicorn, Check JUP Eligibility
- Twitter Post by Lookonchain
- Google News: Airdrop Farmer Earns Over $1 Million in Jupiter Tokens
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