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Despite heavy selling by top crypto influencers, the Kaito token surged 50% post-airdrop as analysts debate its tokenomics and future market potential.
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Kaito’s token has climbed nearly 50% since its highly anticipated airdrop on Feb. 20, maintaining upward momentum despite heavy selling pressure following the token generation event.
Crypto intelligence platform Kaito AI, which brands itself as the “ultimate Web3 information platform,” launched its airdrop claims on Feb. 20, allocating 10% of its token supply to the current airdrop and nearly 20% to future airdrops and community incentives, Cointelegraph reported.
The Kaito AI (KAITO) token rose over 49.5% in the 24 hours leading up to the time of publication trading above $1.74 with a market capitalization exceeding $421 million, according to CoinMarketCap data.
KAITO/USDT, 1-day chart. Source: CoinMarketCap
Despite concerns that insider allocations could create selling pressure, the Kaito token has continued its rally.
Some of the largest recipients of the airdrop — including high-profile crypto influencers, also known as key opinion leaders (KOLs) — have sold significant portions of their Kaito allocations
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Kaito token rallies despite heavy KOL selling pressure
Popular crypto influencer Ansem received $230,000 worth of Kaito tokens and sold all of his supply.
Anthony Sassano, Ethereum educator and investor, received $185,000 worth of Kaito and also sold 100% of his tokens, while Helius Labs CEO Mert sold 80% of his allocation, worth $340,000, according a Feb. 21 X post from crypto intelligence platform Arkham.
Source: Arkham
Part of the initial selling concerns stemmed from onchain analysts who pointed out that a significant portion of the token supply is allocated to insiders. According to onchain investigator RunnerXBT, 43.3% of Kaito’s total supply is designated for insiders, including 35% for the team and 8.3% for early investors.
Source: RunnerXBT
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Despite the criticism, Kaito AI’s technology has gained recognition within the industry.
Marcin Kazmierczak, co-founder and chief operating officer of blockchain oracle solutions firm RedStone, told Cointelegraph that he does “not know a single serious marketer that wouldn’t use Kaito stack.”
Meanwhile, crypto scammers are already banking on the excitement around the project by creating fake airdrop claim pages to trick unknowing investors into sharing their cryptocurrency wallet addresses.
Source: Kaito AI
Kaito AI’s official airdrop claim page was shared by the company’s official X account in a Feb. 20 X post, which will be available for claimants until March 22.
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This article first appeared at Cointelegraph.com News
