Solana has had many airdrops over the past few years. In 2021, dubbed ‘Solana Summer,’ hundreds of SPL tokens launched on the network. This resulted in the instant creation of giant pools of value. Here we briefly cover the JUP airdrop.
JUP Airdrop Value
The Jupiter airdrop became one of the biggest airdrops on Solana ever. Approximately $700 million of JUP was allocated to nearly one million wallets. Straight after the launch, the JUP token rose to $0.72, peaking JUP at a $6 billion market cap, fully diluted.
With JUP trading at $0.55 at the time of writing, this is a slight loss for those buying at the peak, however, volume has more than doubled over the past few days, showing renewed interest in the fresh token as price begins to stabilize.
JUP Airdrop – The Token
The main question is what the JUP token will do in the future. Like many launches in recent months, the token is planned to be a governance token. Holding the token will allow users to vote on management aspects of the Jupiter platform. What has been found is that the governance tokens tend not to pull as much value compared to other tokens with more utility. If you take Arbitrum as an example of a network that has considerable volume but an underperforming token. Also, considering there is only a fraction of the JUP token’s supply currently circulating, there is a lot of planned inflation.
Image from Bitfinex Education blog
Half of the supply will be under the team’s control, with contributors and grants taking another 10% of the supply. This shows that only 40% of the token supply is even accessible to the general public. This kind of tokenomics does not bode well for the future, as the team is undoubtedly working towards its own profit goals, and the token itself has no financial incentive other than price appreciation.
Was JUP Worth The Wait?
All-in-all, potentially not. Poor tokenomics and high future inflation would put this token as a strong sell. The recommendation is that anyone who made decent money in the airdrop would likely be best placed to sell out and wait until the dust settles. Anyone buying now may find themselves down in USD value in the coming months.