Today in Markets

Dymension's Chaotic Airdrop

The DYM token pumped despite a rough launch.
Feb 7, 20241 min read

Modular settlement layer Dymension went to mainnet yesterday, distributing 70M DYM tokens worth $420M to bluechip NFT holders and participants in the Celestia, Ethereum, Solana, and Cosmos ecosystems in the process! What should you do with your free DYM?

Dymension’s launch was anything but perfect, with Chorus One’s bad validator controlling over one-third of DYM staked, preventing the chain from coming to consensus and causing chaos on Crypto Twitter during the early hours of mainnet.

Despite performance issues, DYM bulls were not dissuaded, sending the token pumping by 58% to above $6 off Dymension’s mainnet announcement!

While Dymension’s technical merits have helped in creating a strong investment case to support price, a substantial percentage of DYM demand is coming from airdrop hunters looking to stake the token for airdrop rewards from the projects that depend on Dymension for settlement.

For recipients of the DYM drop who want to continue to hold for further upside, staking a portion of your DYM is highly recommended to expose yourself to these future airdrop opportunities!

Alternatively, you can opt to sell your DYM, a process that can be exceedingly cumbersome for DYM recipients on MetaMask looking to cash out to exchanges that do not support DYM transfers.

Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

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