Jupiter (JUP) Token Price Dips After 700 Million Token Airdrop
Jupiter (JUP) Token Price Dips Following Airdrop
The Solana-based decentralized exchange (DEX) aggregator, Jupiter, saw its native token, JUP, experience a 6% price drop to $0.81 in the 24 hours following the launch of its massive 700 million JUP token airdrop. This represents a 33% decline from its recent high of $1.20.
Airdrop Challenges and Delays
The airdrop, distributed to approximately 2 million eligible wallets, initially saw a 5% price increase in JUP. However, this was short-lived. Soon after, users reported difficulties claiming their tokens. Jupiter addressed these issues on X (formerly Twitter), citing issues with "Web2 infrastructure providers" leading to slow claim processing. They reassured users that claims were still being processed and that a three-month claim window was in place.
Jupiter had previously cautioned users about potential Solana network congestion and high gas fees, advising them to utilize the extended claim period instead of rushing to claim immediately. Despite these warnings, the airdrop faced immediate selling pressure.
Impact and Future Outlook
The JUP token's price is likely to experience further volatility as more users claim their airdropped tokens. At the time of writing, JUP is trading at $0.81. This airdrop is part of a larger Jupiter DAO initiative, with plans to airdrop 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, it has since fallen by 59%.
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