Wormhole $617M Airdrop Ignites Valuation Surge To $3B, But W Price Stumbles 23%
April 03 2024 - 6:00PM
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Wormhole, a cross-chain communication protocol enabling the
transfer of assets between blockchains, recently launched an
airdrop campaign for its newly issued governance token, W. Early
users were rewarded with 617 million W tokens, and the protocol
also released a roadmap outlining its plans. Wormhole Protocol
Unveils Roadmap According to the protocol’s roadmap, W aims to
become a native multi-chain token, leveraging the advantages of
both the Solana and Ethereum Virtual Machine (EVM) chains.
Initially launched as a native SPL token on Solana, W will
reportedly leverage Solana’s performance, offering increased
performance, scalability, low transaction costs, and fast
settlement times. Related Reading: Crypto Expert Encourages
Investors To Buy The Dip As Bitcoin Price Falls To $64,000 After
the Solana debut, W will be extended to all Wormhole-connected EVM
chains using Wormhole Native Token Transfers (NTT). This framework
allows W to continuously roll out across Solana, the Ethereum
mainnet, and Layer 2 (L2s) without liquidity fragmentation. The
open-source NTT framework allows projects to control token behavior
on each chain, including token standards, metadata,
ownership/upgradability, and custom features. Cross-Chain
Governance System Wormhole also introduces a governance system
where token holders on any supported chain can create, vote on, and
implement governance proposals. This approach allows maximum
participation in the Decentralized Autonomous Organization (DAO) by
providing a frictionless user experience for token holders
distributed across multiple chains. As announced, W holders
can lock and delegate their tokens on Solana and EVM chains,
allowing them to participate in governance decisions. The Wormhole
DAO, composed of W token holders, will oversee the Solana, Ethereum
mainnet, and EVM L2s governance system. Wormhole, developed by Jump
Crypto, a division of Jump Trading Group, has been under
development for several years. Despite encountering challenges,
including a significant hack in February 2022 resulting in a loss
of approximately $320 million, the protocol has continued to
evolve. Furthermore, the recent listing of the W token on
major exchanges such as Crypto.com and the future support planned
by Coinbase on April 4 further validate its progress. W’s Debut On
OpenBook The W token debuted on the Solana-based decentralized
exchange (DEX) OpenBook at $1.66, with a market capitalization of
$2.98 billion and a fully diluted value of $16.5 billion.
However, the token’s market capitalization and fully diluted value
have since fallen to $2.2 billion and $12.5 billion, respectively,
according to updated data from CoinGecko. Trading volume for W has
remarkably increased, reaching $555,937,593 in the last 24 hours,
representing a staggering 25,732,359.60% surge. Related Reading:
Fear Grips XRP Market As Liquidations Top $6 Million – Details
Following the airdrop, some users openly shared their sell-offs of
the W token on social media platforms, resulting in a 23% price
drop. At the time of writing, the token is trading at $1.32.
Featured image from Shutterstock, chart from TradingView.com
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