July 15, 2024
Glitches Greet zkSync Token Launch as Network Strains
Latest Cryptocurrency News

Glitches Greet zkSync Token Launch as Network Strains

The much-anticipated zkSync token (ZK) officially launched on exchanges on June 17. According to CoinMarketCap, the token has a total supply of 21 billion ZK and a market capitalization of approximately $971 million. It launched on multiple exchanges, including Binance, Bybit, Gate.io, and KuCoin. Initially, the ZK token reached a peak price of $0.30 but has since settled around $0.25.

Source: CoinMarketCap

Network Performance Issues and Security Concerns

Shortly before the token’s launch, zkSync announced on X that its network was experiencing high load and degraded performance in some remote procedure call (RPC) services. RPCs are critical for communication between nodes and for performing network operations such as sending transactions or querying data. The zkSync team assured users that they were working on increasing RPC capacities and advised them to “stay tuned for updates.”

Source: ZKsync

Following the announcement of over 695,000 wallets being eligible for the ZK token airdrop, there was a significant increase in malicious decentralized applications (DApps) impersonating zkSync. Ido Ben-Natan, CEO of Web3 security platform Blockaid, explained that these malicious DApps were “using drainer SDKs to mitigate detection and reach users.”

“The scammers are using Twitter (X) comment sections to reach their target audience. If you go to the reply section of almost every one of ZK’s last tweets, you’ll see many accounts that are abusing Twitter’s verified accounts to distribute links to malicious DApps.”

Airdrop Distribution and Community Concerns

The zkSync token distribution program, which runs from June 17 to July 16, aims to distribute 10.5 million ZK tokens to eligible users. However, the community has raised concerns about the methodology used to filter out Sybil farms, and large numbers of fake accounts created to exploit airdrop distributions. The zkSync team acknowledged these concerns and stated their commitment to ensuring a fair and transparent distribution process for the community.

As zkSync continues to address these performance and security challenges, the community remains vigilant about the potential risks and benefits associated with the new token. The team’s efforts to enhance network performance and secure the airdrop process will be critical in maintaining trust and fostering long-term adoption of the zkSync ecosystem.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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