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Within hours of listing on major exchanges like Binance, Bybit, KuCoin, and Bitget on June 17, SPK crashed over 70% from its peak.
Author: Sahil Thakur
Spark’s newly launched SPK token had a spectacular rise, and an even quicker fall. Within hours of listing on major exchanges like Binance, Bybit, KuCoin, and Bitget on June 17, SPK crashed over 70% from its peak, rattling traders and exposing flaws in airdrop-driven token launches.
The token debuted around $0.1774, briefly attracting market hype. But by Tuesday afternoon (Asia time), it had plunged to lows near $0.04968 – a collapse of over 72%. The drop erased more than $120 million in value and triggered concern over Spark’s tokenomics and market readiness.
The sharp decline was fueled by a massive influx of supply. Spark’s initial circulating supply stood at about 1.7 billion SPK — 17% of its total 10 billion supply. Of this, 300 million tokens, worth around $18 million at peak, flooded the market from airdrop recipients within hours.
Binance’s HODLer airdrop alone distributed 200 million SPK to users who had staked BNB during the previous week. This was a passive reward, not linked to active protocol use. When the token hit exchanges, many of these recipients sold quickly to lock in gains.
The result: thin liquidity on early order books, especially on smaller exchanges, could not absorb the volume. SPK’s price collapsed under intense selling pressure.
Despite the crash, Spark is no small project. It holds nearly $8 billion in total value locked (TVL) and is backed by $6.5 billion in reserves via Sky. The infrastructure remains robust, but the launch exposed key issues with SPK’s rollout strategy.
Spark minted 10 billion SPK tokens at genesis, set to be distributed over a 10-year period:
Farming has not yet started. The large airdrop and early liquidity focused too heavily on passive recipients — creating a “farm-and-dump” dynamic seen in other recent launches like Arbitrum, , and LayerZero.
SPK’s trajectory echoes a common theme in crypto: airdrop recipients — often speculators rather than engaged users — rush to sell, draining value and destabilizing the launch. Despite strong fundamentals, the project’s tokenomics left little room for price discovery.
Unless future token distributions focus on aligned incentives and deeper liquidity planning, even promising ecosystems like Spark may find themselves repeating the cycle.
| Token | Airdrop Size | Drop After Launch | Main Reason for Drop | Recovery Performance |
|---|---|---|---|---|
| ZORA | 1 billion tokens to ~2.4M addresses (~10% of total supply) | −64% in first 2 hrs (from $0.037→$0.017), dropped further to ~$0.013 | Surprise/unannounced launch, insider-heavy distribution, lack of transparency | Partial stabilization near $0.013–$0.023; ongoing community rebuilding |
| Aptos (APT) | 20 million APT (~2% supply) to ~110k testnet users (~150 APT each, ~US$1,237/address) | −40% (from ~$13.73→$8.25), even falling under $5 months later | Sell‑pressure by early testers/investors, tokenomics hotly debated | Recovered modestly to ~$5.8 (~8% bounce off low), but still well below launch highs |
| Kaito (KAITO) | 10% supply in initial airdrop; total ~$74M value across ~5.7M wallets (~19.5% of supply incentives) | Sharp initial dump by major recipients (top influencers sold 80–100%) | Early whales/OGs selling, speculation-driven farming | +150% rally since May, aided by staking programs |
| Arbitrum (ARB) | ~1 billion tokens (~11.6% of supply) to ~340k addresses | Initial drop below $2 after launch | Mass claiming sell-pressure, bot/phish issues, general market malaise | Selling has subsided; data indicates rising holding times—potential 15–30% bounce setup |
| PENGU | 25.9% of supply (~62 billion of 88.8 billion) to NFT community | −60% in 24 hrs (from $0.068→$0.028–0.031) | Massive community sell-offs, NFT floor correlation | Partial recovery: NFT floor rose, and token approached ~$0.036–$0.040 in bounce |
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