Recently Launched Altcoin Nosedives After Major Airdrop

A recently launched altcoin has struggled to maintain price stability following its highly anticipated airdrop, with 75% of the 125 million distributed tokens already claimed.

Magic Eden (ME), the project behind the token, saw a surge of activity within the first hour, during which over 60 million tokens were claimed. The remaining 25% are expected to be gradually claimed in the coming days, likely minimizing the risk of sudden sell-offs that could heavily impact the token’s value.

Wallet data reveals that nearly 80% of claimants have sold their entire allocation, using the airdrop as an opportunity for short-term liquidity. Of the 133,888 wallets that participated, only 8.3% have chosen to retain all their tokens, and less than 1% of participants opted to buy more ME after the airdrop. This highlights limited enthusiasm for the token as a long-term investment.

Currently, ME’s price hovers near critical support levels. A breach below $4 could spark further declines, while holding above this level might signal a potential recovery. Resistance at $4.69 and $5.10 remains a challenge, and overcoming these barriers will be crucial for any upward momentum.

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The airdrop’s mixed reception underscores the difficulty of sustaining long-term engagement after such events. Magic Eden now faces the challenge of fostering renewed interest and demonstrating value to investors, which will be key to stabilizing and improving the token’s market performance.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.