zkLink, an Ethereum layer-3 project, has launched its native token, ZKL, across several centralized exchanges. This includes Bybit, Hashkey, BitGet, KuCoin, and Gate.io.
However, major platforms like Binance, Coinbase, and Kraken have not listed the ZKL token.
ZKL Crashes Minutes After Listing on Centralized Exchanges
zkLink outlined its ambitious vision, which included introducing aggregated rollups and layer 3 solutions. These innovations are intended to streamline blockchain functionality and ease the use of Web3 applications. The launch of the ZKL token is a crucial milestone in achieving the potential of an Aggregated Layer 3 network.
However, shortly after its listing, the ZKL token dropped significantly, plunging by about 45%. As of writing, it is trading at around $0.42. In a conversation with BeInCrypto, zkLink mentioned that the increased selling pressure is due to beneficiaries of community rewards cashing out.
“These token rewards make up for 4.95% of the total supply. This sizable amount is awarded to the community for participation in zkLink’s Aggregation Parade: A TVL campaign that launched in mid-march. At its peak, the campaign attracted over $1 billion in TVL into zkLink Nova. Naturally, the TVL rewards would indicate an incoming high selling pressure when the token lists.,” zkLink spokesperson told BeInCrypto.
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The ZKL token serves multiple roles within the zkLink protocol. Primarily, it helps subsidize gas costs on the zkLink Nova network and funds the zkLink X’s App Rollup infrastructure service. Moreover, it grants ZKL holders governance rights, allowing them to influence decisions that determine the future direction of the zkLink platform.
The platform claims that its governance aspect promotes decentralized participation and ensures the network’s long-term sustainability. It also states that the token’s governance mechanism is built to be transparent and inclusive. Yet, preserving the integrity of these processes continues to be a challenge.
Vince Yang, CEO of zkLink, discussed the importance of the token in an interview with BeInCrypto.
“Operationally, ZKL tokens are the lifeblood of the zkLink ecosystem, serving as a subsidized gas fee token on Nova, user rewards for protocol engagement and payment for the app rollup license fee. ZKL tokens are also given as grants to DApp teams accepted in our Ecosystem Developer Program,” Yang told BeInCrypto.
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Despite its extensive utility and fundamental role within the zkLink ecosystem, the initial market response has been poor, with substantial selling pressure following the listing.
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