Key Takeaways
- Zora had its airdrop on April 23, but its price crashed immediately afterward.
- The airdrop’s allocation drew considerable backlash from the community.
- What are the main reasons behind this hostile community reaction?
Zora Network is a layer-2 solution dedicated to Non-Fungible Tokens (NFTs). The highly anticipated Zora airdrop went live on April 23 . Out of the total supply of 10 billion tokens, the airdrop distributed 1 billion.
Binance also announced the listing of ZORA and another airdrop for Binance users who have used the Alpha platform. Over 540,000 addresses were eligible for the airdrop.
The airdrop caused the community to react adversely for many reasons, which this article will explore.
ZORA Airdrop
Users are unsatisfied with the airdrop, stating the allocation is much smaller than expected.
One user claims he spent over $1,000 in gas fees and received $4 in airdrop value.
Another user claims to have completed over 2,000 transactions and held over 100 Zora NFTs while receiving less than $1 in airdrop value.
Zora’s co-founder’s launch announcement was met with mostly adverse reactions, mainly because ordinary users felt cheated out of their allocations.
Zora’s snapshot data has two phases: the first covers January 2020 to March 2025, and the second covers March to April 2025.
Original users from the first snapshot likely received a disproportionately small share of the airdrop, while more recent users, who could be influencers, received a larger share.
Base founder Jesse Pollak, who had hyped up the project recently, received 2.1 million ZORA tokens.
Over half of the ZORA allocation will go to the Treasure, Team, and Strategic contributors, fueling concerns about unfair allocation and centralization.
Also, the Base Chain crashed at launch, and the Zora team did not officially announce that claims were open until two hours after the launch.
On-chain data shows that Zora insiders dumped their tokens before the announcement and that the Zora Network has profited over 500 ETH from the platform’s fees, at a margin of over 35%.
Finally, ZORA raised $50 million in its last funding round at a valuation of $600 million, while its current Fully Diluted Value (FDV) is $232 million.
ZORA Price Crashes
The ZORA price fell sharply after its launch, declining by nearly 60% and reaching a low of $0.016.
ZORA’s price bounced afterward but trades inside an ascending parallel channel, which usually contains corrective movements.
The ZORA token fell after a rejection from a channel’s resistance trend line and now trades in its lower portion.
A breakdown from the channel could take the price to a new all-time low.
However, it is worth mentioning that the ZORA prediction is based on insufficient price history, reducing its likelihood of success.
In case of a breakdown, the next support will be $0.010. Alternatively, the closest resistance will be $0.030 if the ZORA price breaks out.
Allocation Concerns
The ZORA airdrop set off an unfavorable reaction from the community.
There are many reasons for this, mainly the allocation, which did not reward long-term users.
The ZORA price crashed immediately after launch and risks falling to a new all-time low.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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