Following the airdrop that took place on Tuesday, Scroll's SCR token saw its price drop sharply. This selling pressure is accompanied by community criticism of the distribution method.
Scroll's SCR price drops sharply following airdrop
Tuesday, investors eligible for the Scroll airdrop were able to recover their allocation of SCR tokens. As we have seen, this campaign has generated reactions from the community, given certain rules leaving an impression of lack of recognition for early users.
During the token generation event (TGE), we could see the SCR token trading at a price of around $1.33 per unit. From now on, the cryptocurrency is trading at a price of $0.91, thus showing a fall of more or less 31%:
Figure 1 – Evolution of the price of the Scroll SCR token
Among the criticisms from which the Scroll airdrop suffers, there is in particular the absence of a cap for the rewards, which could thus favor whales, insiders or even capital riskers. Based on this, one in X user named “Andrew 10 GWEI” estimated that the 10 largest rewarded portfolios had received 11.7% of the community allocation.
Additionally, 34% of this same allocation was distributed to the first 100 wallets eligible for the Scroll airdrop:
Where's the money, @Scroll_ZKP ?
Let's calculate the size of your drop allocation.
Completely linear distribution. Spoiler: the top 10 wallets will receive 11.7% of “The Community Drop”
The top 100 will receive 34%. ->@sandyzkp @VitalikButerin pic.twitter.com/y9bLeP2mz1— Andrew 10 GWEI (@Andrey_10gwei) October 21, 2024
💡 Find our selection of the best airdrops of the moment
Still on the subject of criticism of whales, Binance's Lauchpool, having been allocated 5.5% of all SCR tokens, was also singled out. And for good reason, this can benefit large BNB holders, even if they had not used layer 2 Scroll beforehand.
Binance: the benchmark crypto exchange platform
Network activity to watch
Concerning daily transactions, a drastic drop could be observed on Wednesday, but it nevertheless remains logical after the exceptional peak in the opening of claims. For this point, it would be relevant to repeat an observation in the coming weeks in order to establish a trend:
Figure 2 – Daily Transactions on Scroll
For capital deployed within decentralized finance (DeFi) applications, the snapshot announcement resulted in a spike in total value locked (TVL) to nearly $1 billion. To date, this momentary increase has already subsided, returning to values similar to those before the announcement, in this case, $736 million at present :
Figure 3 – Evolution of TVL on Scroll
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For now, the Scroll teams do not yet seem to have reacted to criticism from some of the community. For its part, the SCR represents a capitalization of 170 million dollars, in 260th place in the CoinMarketCap ranking.
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Sources: CoinGecko, DefiLlama, Scrollscan
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Since 2021, I have devoted my free time to seriously educating myself on cryptocurrencies in order to acquire maximum knowledge and credibility. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyzes on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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