TL;DR
- JUP Success: Jupiter (JUP) stands out with a $700 million airdrop on Solana, generating attention and success in the market.
- Distribution Controversies: Controversies arise over JUP’s distribution mechanism, including accusations of overselling and comparisons to an IDO.
- Founder’s Responses: Jupiter’s founder, @weremeow, denies the criticism, explaining the role of the “trading pool” as a measure against volatility.
In recent days, the Jupiter cryptocurrency (JUP) has seen a notable rise in performance, generating billions of dollars in trading volume and attracting numerous investors.
This push was unleashed after a massive airdrop of $700 million to users within the Solana ecosystem, although not without controversy regarding its distribution mechanism.
According to data from CoinGecko, JUP is currently ranked #88, with a price of $0.6173, representing an increase of 2.6 %.
The currency also experienced movements in a 24-hour range between $0.573 and $0.6328, evidencing volatility in its value.
The JUP airdrop, intended for active users on the Jupiter platform, was carried out through a mechanism that rewarded participation in the network.
Additionally, the platform offered the tokens on the open market through a trading pool, allowing investors to acquire JUP and airdrop recipients to sell their newly acquired tokens.
However, this approach generated controversy, being compared to a Decentralized Initial Offering (IDO) instead of a conventional airdrop.
The development team is alleged to have sold over $200 million worth of JUP tokens through this market pool, causing a temporary decline in price.
Jupiter founder @weremeow denied these allegations, calling them “blatantly false.”
Through multiple publications, he explained that the sales mechanism had been misinterpreted.
He also clarified that the trading pool was designed to absorb selling pressure for seven days, providing a cushion against abrupt fluctuations.
Rumors of a possible withdrawal of liquidity seven days after the issuance caused concerns about a “rug pull”, but were quickly denied.
According to @weremeow, the launch pool will remain active for seven days to absorb any selling pressure, and the tokens in the pool will go into the team’s treasury or be used to provide liquidity in the future.
This episode also served as a testbed for Jupiter’s LFG Launchpad, a future project that will allow the platform to issue tokens to Solana users.
Despite the controversies, the Solana community has mostly expressed support for the Jupiter token sale process, highlighting transparency and the absence of venture capital investors as key benefits.
Jupiter (JUP) is in the center of crypto attention, with its recent airdrop generating interest and controversy.
Despite the criticism, the founder has defended the integrity of the process, highlighting the importance of transparency and the innovative design of the platform.
The community mostly supports the Jupiter token sale process in the Solana ecosystem.
