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Jupiter‘s JUP token has attracted billions of dollars in transaction volume and thousands of investors following a massive $700 million airdrop to users in the Solana (SOL) ecosystem. Despite this success, the altcoin has become a topic of debate due to concerns about its airdrop distribution mechanism.
Altcoin Project’s Token Distribution Mechanism Faces Criticism
Currently, the JUP token is trading around $0.60, with a market value just above $800 million. Jupiter is known as a decentralized exchange (DEX) that routes orders to other Solana-based exchanges and offers the best price.
DEX carried out a massive airdrop on January 31, rewarding users with JUP tokens based on their activity. JUP was made available for trading on the open market using a trading pool, allowing investors to buy tokens and airdrop participants to sell them. The altcoin was listed on several major cryptocurrency exchanges, including Binance.
Following this, some market observers criticized the project’s trading pool tactic, claiming it was essentially a disguised initial DEX offering (IDO). This has led to allegations that the development team sold more than $200 million worth of JUP tokens through the trading pool.
Jupiter’s Founder Denies Allegations
The altcoin‘s price fell to $0.56 on February 1 due to the controversy. Jupiter’s founder Meow refuted the allegations, stating that they did not reflect the truth, and denied rumors that the project would remove the provided liquidity.
According to Meow’s statements, the launch pool was designed to absorb the selling pressure from the airdrops and would exist for 7 days. Jupiter’s founder believes this period is sufficient for the pool. Meow announced that all tokens in the pool would remain in the team’s treasury or be used for future liquidity. Despite everything, Jupiter continues to receive support from the Solana community. The community’s support is based on two key advantages: transparency and the absence of venture capitalists.
