Jupiter Price (JUP) Tanks 70% on Airdrop, Another Pump and Dump?

JUP, the native token of swaps aggregation engine Jupiter, has undergone major selling in the last 24 hours after the Solana airdrop on Wednesday, January 31. At press time, HUP is trading 62.7% down a price of just under $0.60.

Is Jupiter Price Facing Pump and Dump?

Soon after the airdrop, the JUP price rallied all the way to a high of $1.27 as per the data on CoinMarketCap. Also, the early bids came around $0.41, meaning, the JUP price tripled in no time taking its market cap to a staggering 1.72 billion at its peak.

However, the JUP price has corrected by 60% since then with the trading volumes skyrocketing to $1.2 billion. In a recent announcement by Airdrop Official shared details regarding the Jupiter token and its upcoming airdrop.  Here are the key highlights:

• The total supply of Jupiter tokens ($JUP) stands at an impressive 10 billion.
• A substantial number of 955,000 wallets that engaged with Jupiter before November 2nd are deemed eligible for participation in the airdrop.
• The distribution plan includes a strategic allocation of 40% of the total token supply across four rounds of airdrops. The first round, slated to kick off the distribution, encompasses 10% of the total supply, equivalent to a substantial 1 billion tokens.

Interestingly, a 17-year-old also made a staggering $1,000,000 with the Jupiter airdrop.

Solana Maintains 100% Upside

“Remarkably, there were no significant issues” reported during the initial phase of the airdrop, stated 7Layer, the anonymous operator of the Overclock validator. “The server appeared quite normal.”

Nevertheless, the launch did encounter some challenges. Certain RPC nodes, acting as intermediaries for wallets and the network, faced difficulties meeting user demands, particularly in the initial 30 minutes of the airdrop, according to validators engaged in discussions on Solana’s Discord server. ”

The average end user encountered significant difficulties in the first 30-45 minutes trying to perform any actions,” noted one validator on the server. “While the consensus layer performed well, let’s acknowledge that the user experience was less than optimal”.

Ultimately, the trajectory of Jupiter’s trading volumes is likely to significantly influence the long-term prospects of the Jupiter price.

However, prospective investors should remain mindful of the constant risk that the excitement surrounding the airdrop may have led to an excessive inflation of the JUP price.

This situation could make JUP vulnerable to a short-term downturn. In the event that the Jupiter price retraces towards $0.40, it might present an attractive opportunity for long-term bulls to consider buying the dip.