SOPH Token Price Plunges 33%: What’s Behind the Drop?
The post SOPH Token Price Plunges 33%: What’s Behind the Drop? appeared on BitcoinEthereumNews.com. Sophon’s utility token, SOPH, experienced a sharp decline of more than 33% within 24 hours of its debut and listing on Binance. The primary driver behind the price plunge appears to be the airdrop of 900 million SOPH tokens, 9% of the total 10 billion supply, unlocked at launch. Why is SOPH’s Price Declining? For context, Sophon is a Layer 2 ZK (zero-knowledge) blockchain built on Validium technology and part of ZKsync’s Elastic Chain vision. It is designed as a consumer-focused platform targeting entertainment applications. The blockchain offers high throughput, low fees, and Ethereum-level security. The project has raised over $70 million from prominent investors, including Binance Labs. On May 23, Binance announced SOPH’s listing via an X (formerly Twitter) post. “We’re pleased to announce that Binance will be the first platform to feature SOPHON (SOPH),” Binance posted. Trading commenced at 13:00 UTC on May 28. On the same day, SOPH also began trading on other major exchanges, including OKX, KuCoin, Upbit, Bitget, and MEXC, marking a broad rollout. According to data from CoinGecko, the token climbed to an all-time high of 0.11 shortly after launch. However, it saw a steep drop after this. Over the past day, SOPH’s price has depreciated by 33.3%. At the time of writing, the altcoin was trading at $0.06. SOPH Price Performance. Source: TradingView The decline also wiped out over $80 million in market capitalization. Furthermore, the trading volume surged 2,724.8%, indicating heavy distribution by early airdrop receivers. At the Token Generation Event, Sophon unlocked 9% of SOPH’s total supply for distribution. This included 6% allocated to Layer 1 farmers and 3% for eligible early contributors, zkSync users, and NFT holders. Notably, airdrops often lead to short-term price declines due to increased supply. This is especially true when a token’s utility is not yet…
The post SOPH Token Price Plunges 33%: What’s Behind the Drop? appeared on BitcoinEthereumNews.com.
Sophon’s utility token, SOPH, experienced a sharp decline of more than 33% within 24 hours of its debut and listing on Binance. The primary driver behind the price plunge appears to be the airdrop of 900 million SOPH tokens, 9% of the total 10 billion supply, unlocked at launch. Why is SOPH’s Price Declining? For context, Sophon is a Layer 2 ZK (zero-knowledge) blockchain built on Validium technology and part of ZKsync’s Elastic Chain vision. It is designed as a consumer-focused platform targeting entertainment applications. The blockchain offers high throughput, low fees, and Ethereum-level security. The project has raised over $70 million from prominent investors, including Binance Labs. On May 23, Binance announced SOPH’s listing via an X (formerly Twitter) post. “We’re pleased to announce that Binance will be the first platform to feature SOPHON (SOPH),” Binance posted. Trading commenced at 13:00 UTC on May 28. On the same day, SOPH also began trading on other major exchanges, including OKX, KuCoin, Upbit, Bitget, and MEXC, marking a broad rollout. According to data from CoinGecko, the token climbed to an all-time high of 0.11 shortly after launch. However, it saw a steep drop after this. Over the past day, SOPH’s price has depreciated by 33.3%. At the time of writing, the altcoin was trading at $0.06. SOPH Price Performance. Source: TradingView The decline also wiped out over $80 million in market capitalization. Furthermore, the trading volume surged 2,724.8%, indicating heavy distribution by early airdrop receivers. At the Token Generation Event, Sophon unlocked 9% of SOPH’s total supply for distribution. This included 6% allocated to Layer 1 farmers and 3% for eligible early contributors, zkSync users, and NFT holders. Notably, airdrops often lead to short-term price declines due to increased supply. This is especially true when a token’s utility is not yet…
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