Key Takeaways:
- Withdrawal Surge: Following an announcement of an airdrop and the subsequent snapshot on April 3, Parcl experienced a substantial withdrawal of funds, leading to a 39.6% decrease in its total value locked, dropping from $185.6 million to $112.1 million.
- PRCL Token Volatility: After the airdrop, the price of Parcl’s PRCL tokens fluctuated significantly, initially opening at $0.62, dipping to $0.45, and later stabilizing around $0.55, amidst broader market declines.
- Broader Market Impact: The cryptocurrency market, particularly Solana-based tokens, faced significant downturns during this period, with tokens like W and TNSR experiencing over 50% declines, reflecting the volatile nature of newly airdropped cryptocurrencies and ongoing network congestion.
Investors began withdrawing substantial funds from the Solana-based real estate betting platform Parcl early this month, subsequent to the platform’s announcement of a snapshot for an upcoming airdrop.
In early April, Parcl initiated the distribution of its native PRCL tokens to eligible users following the airdrop snapshot, which was taken on April 3.
Solana-based betting platform Parcl loses 40% TVL after airdrop https://t.co/sRoKlap4Es
— The Block (@TheBlock__) April 17, 2024
This led to significant withdrawals from the platform, with Parcl’s total value locked (TVL) decreasing by 39.6%, dropping from a peak of $185.6 million on April 2 to $112.1 million, according to DefiLlama.
Parcl operates as a decentralized platform enabling users to speculate on real estate market price movements across major cities.
The airdrop involved distributing 80 million PRCL tokens, representing 8% of the platform’s one billion total token supply.
SOLANA'S PARCL SAW $74M WITHDRAWAL POST-AIRDROP: WHAT WE KNOW
— BSCN (@BSCNews) April 17, 2024
– Following an April airdrop snapshot, investors rapidly withdrew over $75 million from the Solana-based Parcl.
– Post-snapshot withdrawals caused a sharp 40% drop in Parcl’s total value, decreasing from a high of… https://t.co/gUiXbiEgtF pic.twitter.com/53EiqZjm0l
Following the airdrop, the price of PRCL tokens experienced a volatile start; debuting at $0.62, then dropping to $0.45 within four hours, and subsequently recovering slightly to around $0.55, as per CoinGecko data.
This period of volatility coincides with a broader downturn in the cryptocurrency market. Bitcoin, for example, saw a 7% decline over the same week.
Other recently airdropped tokens on the Solana network also struggled, with significant price drops.
Parcl sees $74M in Withdrawals Following Airdrop!
— Sjuul | AltCryptoGems (@AltCryptoGems) April 17, 2024
By the way, the community made a good profit with Parcl by following my shared thread.
How much did you make with it tho?🤔👇 pic.twitter.com/o579IIsZhF
The Wormhole platform’s native W token fell 54% from its April 3 launch following its own airdrop, which distributed over $800 million to eligible participants.
Additionally, TNSR tokens, from the Solana-based NFT platform Tensor, decreased by 52.6% since their introduction on April 3.
This downturn reflects broader market trends affecting Solana-based assets, with Solana (SOL) itself down 30.7% over the month.
UPDATE: INVESTORS WITHDRAW OVER $74M FROM SOLANA-BASED REAL ESTATE BETTING PLATFORM PARCL FOLLOWING AIRDROP SNAPSHOT
— BSCN Headlines (@BSCNheadlines) April 17, 2024
These market movements are compounded by ongoing congestion issues on the Solana network, which saw a record 75% of transactions failing on April 5.
These dynamics illustrate the current challenges and investor responses within the cryptocurrency space, particularly in the context of new airdrops and their immediate impacts on token prices and platform stability.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.
Check Victor out on:
