Jupiter (JUP) Token Price Dips After 700 Million Token Airdrop
Jupiter (JUP) Token Price Dips Post-Airdrop
The Solana-based decentralized exchange (DEX) aggregator, Jupiter, recently launched an airdrop distributing 700 million JUP tokens (valued at approximately $567 million) to around 2 million eligible wallets. However, this significant event was followed by a 6% drop in JUP's price, bringing it down to $0.81. This represents a 33% decline from its recent high of $1.20.
Challenges and Delays in Claiming Tokens
Shortly after the airdrop's launch, users reported difficulties claiming their tokens. Jupiter acknowledged these issues on X (formerly Twitter), attributing the delays to being "throttled by Web2 infrastructure providers." They assured users that claims were processing, albeit slowly, and emphasized the three-month claim window.
“The pie is growing too fast. Claims are a little slow, but are still working. We’re being throttled by Web2 infrastructure providers, so requests are still going through but slow. Working around now! Be patient with us,” Jupiter posted on X.
Jupiter had previously warned of potential Solana network congestion and high gas fees, recommending users utilize the extended claim period to avoid immediate issues.
Market Reaction and Future Outlook
The airdrop initially saw a brief 5% increase in JUP's price before a sell-off ensued. This immediate selling pressure suggests a potential influx of tokens entering the market. At the time of writing, JUP is trading at $0.81, and further volatility is expected as more users claim their airdrop rewards.
This airdrop is part of a larger Jupiter DAO initiative, with plans to distribute 700 million JUP tokens annually in 2025 and 2026. While JUP reached an all-time high of $2.00 during its first airdrop in January 2024, the token has since experienced a significant 59% price decrease.
Disclaimer: This information is for educational purposes only and should not be considered financial advice. Investing in cryptocurrencies involves significant risk.
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