zkSync Token Launches with Network Problems

The much-anticipated zkSync token (ZK) officially launched on various exchanges, including Binance, Bybit, Gate.io, and KuCoin, on June 17.

According to CoinMarketCap, ZK has a total supply of 21 billion tokens and a market capitalization of approximately $971 million. Initially reaching a high of $0.30, the token has since stabilized at around $0.25.

Network Hiccups Precede Launch – RPC Issues Cause Temporary Delays

Prior to the launch, zkSync faced network issues due to high load and degraded performance in some remote procedure call (RPC) services. RPCs are crucial for communication between nodes and performing network operations such as sending transactions and querying data.

The zkSync team announced they were working on increasing RPC capacities and advised users to stay tuned for updates.

In conjunction with the token launch, over 695,000 wallets became eligible for a ZK token airdrop, leading to an increase in malicious decentralized applications (DApps) impersonating zkSync.

Ido Ben-Natan, CEO of Web3 security platform Blockaid, noted that these malicious DApps were utilizing drainer SDKs to avoid detection and target users.

Scammers were found exploiting Twitter (X) comment sections to distribute links to these harmful applications, often abusing verified accounts to enhance their credibility.

The token distribution program, scheduled from June 17 to July 16, aims to distribute 10.5 million ZK tokens to eligible users. However, the community has raised concerns regarding the methodology used to filter Sybil farms.

Sybil attacks involve one entity creating and using multiple wallets to farm an airdrop. In response, zkSync has defended its criteria, explaining their Sybil detection and prevention measures.

Community Questions Airdrop Fairness – Sybil Farms Raise Concerns

In an FAQ document updated on June 15, zkSync elaborated on its unique airdrop design and explicit Sybil detection to ensure the highest number of organic users were rewarded.

Despite these efforts, some sophisticated Sybil wallets managed to evade detection. These Sybil attackers often use distinct exchange addresses, randomize their behavior, and engage in activities unique to zkSync projects, making them difficult to distinguish from real users.

ZkSync highlighted the challenge of balancing aggressive filtering with the risk of falsely flagging genuine users.

They chose a strategy that combines value scaling and multipliers, assigning fewer eligibility points to wallets with low funding—often indicative of Sybil behavior—but providing a boost if on-chain behavior suggested human activity.

Real users typically concentrate their wealth in a few accounts, resulting in larger balances compared to bots, who spread small amounts of crypto across many accounts.

Acknowledging the inevitability of some Sybils in every airdrop, zkSync emphasized their efforts to minimize their presence. For each detected Sybil, hundreds more were excluded from the airdrop.

Binance Steps Up with Additional Airdrop – Offering Alternative for Users

In response to ongoing concerns about the ZK token distribution, Binance has launched its own ZK airdrop for those ineligible for the official airdrop. Binance plans to distribute 10.5 million ZK tokens to over 52,000 users.

To qualify, addresses must have initiated at least 50 transactions on zkSync Era between February 2023 and March 2024, conducted transactions in at least seven months during that period, not be a centralized exchange, bridge, or contract address, and must not have been eligible for the official airdrop.

Each eligible Binance user will receive 200 ZK tokens.

The launch of the zkSync token has been met with a mix of enthusiasm and challenges. While the distribution aims to reward organic users, the community’s concerns about Sybil attacks and the measures to combat them remain a significant topic of discussion.

The additional airdrop by Binance seeks to address some of these concerns, offering an alternative avenue for users to receive ZK tokens.