Jupiter, the token swap exchange on Solana, recently carried out one of the largest airdrops in Solana’s history by distributing its new token JUP to around one million Solana wallets. The opening trade on Binance valued the tokens allocated to the airdrop at approximately $700 million.
Within the first hour of the airdrop, Solana wallet owners claimed one-fifth of the distributed tokens, and at the time of writing, they have claimed two-thirds. Over 459,000 wallet owners have claimed around 700 million JUP, equivalent to $417 million, with the token currently trading at $0.62.
Are Jupiter insiders manipulating JUP?
However, concerns have arisen about Jupiter’s insiders potentially siphoning JUP’s liquidity. Some observers speculate that the airdrop event might have been a distraction from insider liquidations. The founders withdrawing liquidity backing their JUP allocations could contribute to the substantial first-day transaction volume of $1.4 billion.
Jupiter’s founder, known as Meow, is also associated with other recently-launched tokens, including WEN and MER. While pseudonymous, Meow is known publicly and often shows his face on camera.
Rode this “no VCs, coin of the people” branding— Evanss6 (@Evan_ss6) February 1, 2024
Cashing out $200MM cold hard cash no vesting
Still own the vast majority of the project going forward
Congrats to “long term investors” who bought into $7B FDV public sale
Magnum Opus pic.twitter.com/N1HtT3hqVq
The airdrop event led to questions about potential insider activities, with savvy insiders possibly withdrawing token liquidity instead of directly selling tokens to avoid negative perceptions.
Other concerns with the Jupiter airdrop
In the case of the JUP airdrop, the token is primarily backed by the stablecoin USDC on exchanges supported by Jupiter, such as Aevo, Meteora, Orca, and the Jupiter exchange itself. Meow has admitted to selling some JUP tokens directly.
Besides concerns about insider activities, the JUP token on Solana has experienced trading confusion with an unrelated token with the same ticker on Ethereum. It highlights a broader issue in the crypto space where unrelated blockchain assets share the same ticker symbols.
Despite potential concerns and trading confusion, Jupiter’s JUP airdrop proceeded relatively smoothly, considering Solana’s historical challenges with blockchain outages during spikes in activity. The event raises questions about the dynamics between airdrops, insider liquidity, and trading volume, offering a unique case study within the crypto industry.