An individual known as an “airdrop hunter” managed to acquire $753,000 worth of the latest ZKsync token (ZK) using 85 wallets, as reported by the cryptocurrency tracker Lookonchain. The trader then proceeded to transfer 2.71 million ZK valued at $678,000 to Binance and sold 300,000 ZK for 20 Ethereum (ETH) worth $69,000 via the decentralized exchange (DEX) SyncSwap.

ZKsync is a layer-2 Ethereum scaling protocol that recently initiated the first airdrop of the ZK token on Monday, aiming to distribute 17.5% of the total supply to 695,232 wallets. The ZKsync Association disclosed that within just two hours, more than 45% of the airdropped ZK tokens were claimed by over 225,000 addresses, leading to network performance issues.

The association specified that two-thirds of the total token supply will be allocated to the community, while the remaining one-third will be distributed among the project’s team and investors. The ZK token serves as a protocol token that enables holders to propose and vote on protocol upgrades, as well as cover network fees using ZKsync’s native account abstraction. With governance-based protocol enhancements, the community can enhance ZK to introduce staking and other features.

As additional ZK chains are launched, the token is expected to play a crucial role in coordinating technical advancements. While ZKsync Era marks the first ZK chain, Lens Network, Cronos zkEVM, GRVT, and several others are set to debut in the coming months.

ZK is currently ranked as the 97th cryptocurrency asset, with a market capitalization exceeding $796 million. The token initially began trading at around $0.28 but has since decreased to $0.217.

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