The Parcl protocol, operating on the Solana blockchain, recently experienced a significant setback as it saw a 40% decline in its Total Value Locked (TVL) following an airdrop event associated with its PRCL token. Data from DefiLlama revealed that users withdrew more than 40% of the TVL from Parcl’s betting platform for the real estate market.
Solana Project Parcl Loses Millions as TVL Crashes
The protocol’s TVL plummeted from $185.6 million to $109 million following the implementation of the airdrop, which occurred on April 15. This unexpected decline came amidst the rollout of the airdrop snapshot. In response to this situation, the Parcl team took action by penalizing addresses suspected of being involved in a Sybil attack, a form of manipulation by creating multiple fake identities.
A rough timeline of events ahead:
→ April 16, 12:59 UTC: PRCL claim goes live via @ParclLimited
→ April 16, 13:00 UTC: PRCL trading begins on CEXs https://t.co/K4fopEkHrT— Parcl (@Parcl) April 15, 2024
As trading for the PRCL token commenced at $1, its value swiftly dropped to approximately 50 cents per coin. At present, the token is trading at 47 cents, marking a 14.5% decline over the past 24 hours.
Airdrop Impact
Parcl announced the launch of its PRCL token on April 16, offering early adopters of its ecosystem and core community members an opportunity to claim the token until December 31. The crypto space has seen a surge in airdrop activities recently. For instance, the cross-chain protocol Wormhole on Solana conducted an airdrop of W tokens earlier this month, which attracted significant attention but also drew scammers. Despite reaching a high of $1.50 initially, the token’s price subsequently dropped to around 60 cents.
Another notable development in the blockchain ecosystem is the launch of a governance token by the NFT platform Tensor. The asset’s price approached the $2 mark on April 9 but has since experienced a decline, currently trading around 80 cents.
The aftermath of Parcl airdrop incident underscores the volatile nature of the cryptocurrency market and the potential impact of such events on project valuations and investor sentiment. It serves as a reminder of the importance of robust security measures and community engagement strategies in navigating the complexities of DeFi and blockchain ecosystems.
About Parcl
Parcl functions as an on-chain real estate platform on solana, which allows investors to buy virtual square footage of the physical real estate in the most profitable neighborhoods of the US. The Parcl Data Feed is a tool to follow the price per square foot in different areas of the United States. This data is then fed into a smart contract and investors can choose to invest in the movements of the real estate market in each market.
