Wormhole’s governance token W is down by 14% since its debut on Solana.
The token’s market cap drops by 30% from $3 billion to $2.15 billion.
674 million tokens were airdropped to eligible users on Wednesday.
Debut of W, the governance token of the cross-chain messaging protocol Wormhole, is at odds with the usual occurrence of a subsequent price surge post-airdrop. The token has remained in a state of decline ever since it started trading on Wednesday.
Wormhole airdropped 674 million tokens — 6.75% of the total supply — as SPL tokens on Solana at 11 AM UTC yesterday. It opened trading at the price of $1.66 on Solana-based OpenBook. Notably, in the last 20-hour window, the token noted a decline of 13.7%. As per TradingView, the trading pair, W/USDT, hit a high of $1.86 on the crypto exchange Binance.
In the last 24-hour window, it peaked at $1.86, reaching a market cap of $3 billion. But it slid to a low of $1.13 on Thursday. At press time, W traded at $1.18 with a trading volume of $1.74 billion. According to CoinMarketCap data, 1.8 billion W tokens are valued at over $2.156 billion.
Amid the watch over the token’s performance, warnings about golden tick verified accounts impersonating the official Wormhole account with fake airdrop links are flooding X (Twitter).
Zoom Out and Glance at W’s Long-Term Plan!
The soon-to-be multichain token initially is deployed on Solana. According to the strategies of this protocol, W is poised to serve as the cornerstone of the blockchain realm’s “first multichain governance system.” Subsequently, as outlined in the next phase of the roadmap, it will roll out to EVM chains synchronized with Wormhole. This implementation will be facilitated through Wormhole Native Token Transfers (NTT), a novel framework designed for direct token transfers across multiple blockchains.
Following this, token locks and delegation on Solana and EVM chains fall into place, opening doors for W token holders to actively contribute to governance. The endgame is Wormhole DAO which would bolster multchain governance.