JUP sink by 63% amid $700m airdrop and wrong pump scheme

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JUP, the native token of Jupiter, a decentralized exchange aggregator on Solana, crashed shortly after listing on centralized exchanges.

According to CoinMarketCap, over the past 24 hours, the token has fallen by 63% to $0.5887. At the opening of trading, JUP was trading at $1.2707.

JUP sink by 63% amid 0m airdrop and wrong pump scheme — Jupiter price | Source: CoinMarketCap

Major trading platforms Binance, Bitfinex, OKX, and others have registered the token and opened trading. Later, the Binance team announced that Binance Futures will launch Jupiter futures. However, this did not help JUP recover its price.

Amid the excitement surrounding the JUP listing, Traders accidentally performed a pump and dump scheme with the wrong token. Due to the similarity of the ticker, traders began to buy the wrong token, and after realizing the mistake, the rate started to plummet. The project’s website says it is no longer operational.

JUP sink by 63% amid $700m airdrop and wrong pump scheme - 2 — Another Jupiter token | Source: CoinMarketCap

The collapse in the price of the Jupiter token was accompanied by a large-scale distribution of JUP worth $700 million. According to Jupiter’s plans, 40% of the 10 billion JUP tokens will be distributed among members of the Jupiter community. In the first stage, it is planned to withdraw 1 billion JUP tokens to the wallets of Solana users.

JUP PIE CATS

Over the last week, as everyone in the world was hunting me for JUP updates, I must confess to being very inspired by this video instead.https://t.co/O4znsjujFa

I mean, check this out – the level of care he takes to get the cat ready is exquisite. The cat is now… pic.twitter.com/fYyzkJPtFa

— meow 🥧 (@weremeow) December 15, 2023

The founder of Jupiter Meow commented on the collapse in the token price after the distribution. According to him, recipients of airdrops get a massive pool for ongoing sales. In contrast, potential buyers get the assurance that there is a large pool that can withstand the considerable sales pressure from airdrops, which will cause them to turn away en masse immediately.

Hi all, i got advice in discord to be even more clear so let me say it simply:

If i did an OTC deal or a regular IDO, we would have gotten a similar amount if not more without any of the confusion that comes with pioneering new concepts and absolutely zero risk. Trust me, that…

— meow 🥧 (@weremeow) February 1, 2024

“We, as a team, take on the risk that we have zero certainty about how much we will end up with because the community and those who have buyer remorse get first dibs.”

Meow, Jupiter founder

He believes the system remains good because it forces the team to set a reasonable price, prevents wild swings, and provides strong confidence in consistency between early buyers, the team, and community hodlers.

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