Wormhole $617M Airdrop Ignites Valuation Surge To $3B, But W Price Stumbles 23%

Recently, Wormhole – a protocol facilitating asset transfers between different blockchains through cross-chain communication – announced an airdrop for its newly introduced governance token, named W. This event saw the distribution of 617 million W tokens among the early adopters. Additionally, Wormhole unveiled a roadmap detailing their future plans.

Wormhole Protocol Unveils Roadmap

Following the blueprint of the protocol, W intends to evolve into a versatile token that seamlessly integrates with multiple blockchains, specifically Solana and Ethereum. By doing so, W will capitalize on the unique benefits offered by both platforms, namely Solana’s high-performance capabilities and Ethereum‘s extensive smart contract functionality.

At first, W was introduced as the native token on the Solana platform. According to reports, W intends to take full advantage of Solana’s capabilities, resulting in faster processing, enhanced scalability, reduced transaction fees, and quicker settlements.

Following the launch of Solana, W will be expanded to include all Ethereum Virtual Machine (EVM) chains linked through Wormhole, using Wormhole Native Token Transfers (NTT). This system enables W to seamlessly expand to Solana, Ethereum’s mainnet, and Layer 2 networks (L2s), preventing the issue of liquidity fragmentation.

Using the open-source NTT framework, you have the flexibility to manage token functionality across various blockchains. This includes setting token specifications, metadata, ownership rights, and the ability to upgrade, as well as incorporating unique features for each project.

Cross-Chain Governance System

Wormhole enables its governance system to let token owners from various supported blockchains propose, vote on, and execute decisions. This setup ensures wide involvement in the Decentralized Autonomous Organization (DAO) by delivering a smooth user experience for dispersed token holders.

Announced previously, W token owners have the ability to securely lock and delegate their tokens on both the Solana and Ethereum networks. This empowers them to take part in making important decisions within the governance structures of Solana, Ethereum mainnet, and EVM L2s. The decentralized autonomous organization (DAO) made up of W token holders, named The Wormhole DAO, will be responsible for overseeing and managing this governance system.

Wormhole, a creation of Jump Crypto, which is part of Jump Trading Group, has been in the works for quite some time now. Despite facing hurdles along the way, such as a major hack in February 2022 leading to an estimated $320 million in losses, this protocol has persisted in its growth.

In addition, the recent addition of W tokens to prominent exchanges like Crypto.com and the upcoming support on Coinbase starting April 4 serves as confirmation of its advancement.

W’s Debut On OpenBook

On the decentralized exchange OpenBook running on the Solana blockchain, the W token made its first appearance with a price tag of $1.66 and a market capitalization amounting to $2.98 billion. Meanwhile, its fully diluted value was estimated at a substantial $16.5 billion.

Despite the drop in market capitalization and fully diluted value for the token W, now at $2.2 billion and $12.5 billion respectively, according to recent data from CoinGecko; there has been a significant increase in its trading volume. This amounted to $555,937,593 in the past 24 hours, marking a massive surge of over 25,732,359.60%.

After receiving the W token through the airdrop, certain individuals publicly announced their sales on social media, leading to a significant decrease in value by 23%. Currently, the token is priced at $1.32.

Wormhole $617M Airdrop Ignites Valuation Surge To $3B, But W Price Stumbles 23%

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2024-04-04 01:16