Missed The $700 Million JUP Airdrop And Looking For The Next One? | $JUP Trade Idea

Over $700 million worth of JUP tokens were airdropped to nearly a million wallets, attracting significant attention and trading activity. Now everyone wants to know two things.. Is $JUP a buy here, and how do I get into the next round of airdrops!?? Well in this article we breakdown what Jupiter Protocol and $JUP is as well as how they work. We also go over how the airdrop and future airdrops are structured. At the end of this article we have a trade idea for $JUP!

February 2, 2024
Meta Matt
Missed Out On The First JUP Airdrop?

JUP: Riding the Airdrop Wave, But What Lies Ahead?

Jupiter Protocol ($JUP) is a rising star in the DeFi space, aiming to make blockchain accessible and secure for everyone. Recently, they made waves with a massive airdrop in January 2024, distributing millions of JUP tokens to users who interacted with their platform. It was a bold move that attracted significant attention and community engagement. But the question remains: what does the future hold for JUP and its holders?

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The Airdrop Talked About Around The World Blockchain

JUP's massive airdrop in January 2024 sent shockwaves through the crypto world, attracting millions of people and distributing hundreds of millions of dollars. But what exactly happened, and what does it mean for the future of JUP and its holders?

  • Eligibility: This airdrop was open to wallets that interacted with the Jupiter protocol before November 2nd, 2023. This included activities like swapping, providing liquidity, or participating in governance.
  • Claiming: Users could claim their tokens through the Jupiter website or app by connecting their eligible wallet.
  • Total Supply Of JUP: 10 billion JUP.
  • Total Airdrop: 1 billion JUP (10% of total supply)
  • 20% (200 million JUP): Evenly distributed among all eligible wallets.
  • 70% (700 million JUP): Scored based on user engagement with the protocol (more activity, more JUP).
  • 10% (100 million JUP): Reserved for community contributors and developers.

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Future Airdrops: Three additional airdrops are scheduled, happening on January 31st of each year (2025, 2026, 2027). There is 3 billion JUP remaining for future airdrops. It is not officially announced yet, but expected to be similar to the first airdrop with a combination of equal distribution and activity-based scoring.

Eligibility for future airdrops: While past engagement with Jupiter seems likely to again contribute to airdrop size, specific details have not been confirmed. Continue using the platform if you want to maximize your potential future rewards. JUP's recent massive airdrop generated significant buzz, attracting a million users and distributing millions of tokens. While the airdrop was a remarkable event, it's crucial to look beyond the hype and understand the core value of JUP and Jupiter Protocol.

What Is Jupiter Protocol?

More than just another cryptocurrency, JUP serves as the fuel for the Jupiter protocol, a Solana-based platform that aims to simplify and optimize decentralized finance (DeFi) for everyone. It acts as a liquidity aggregator, meaning it searches for the best prices across various decentralized exchanges (DEXs) and executes your trades with optimal efficiency. By leveraging the collective liquidity from multiple DEXs, Jupiter seeks to offer users:

  • Better rates: By analyzing different DEXs, Jupiter aims to find the best possible price for your crypto swaps, potentially saving you money on fees and slippage.
  • Liquidity Aggregation: Imagine finding the best exchange rates for your crypto swaps across multiple DeFi platforms without the hassle of hopping between them. JUP's magic lies in its ability to aggregate liquidity from various DEXs, offering you the optimal trade execution in a single, user-friendly interface.
  • Enhanced Accessibility: JUP believes the blockchain shouldn't be an exclusive club. Their mission is to make it accessible and secure for everyone, regardless of technical expertise. Their platform strives to be intuitive and user-friendly, eliminating barriers for newcomers and veterans alike.
  • Community-Driven Future: JUP empowers its users through the upcoming Jupiter DAO. This decentralized autonomous organization grants token holders the power to actively shape the platform's direction through voting on key decisions. It's a community-driven approach to the future of DeFi.
  • Utility Beyond Governance: While its current focus lies on governance within the DAO, JUP's potential extends far beyond voting rights. Future integrations and functionalities within the Jupiter ecosystem could unlock diverse use cases, increasing the token's utility and value.
  • Innovation & Growth: The innovative Gravity framework empowers individuals and organizations to easily build and deploy custom dApps on the Jupiter platform. This fosters a vibrant ecosystem and fuels continuous growth.
  • No token sale: Unlike many projects, Jupiter opted for a large airdrop instead of a traditional token sale, potentially making it more accessible and community-driven.
  • Focus on security and accessibility: The project prioritizes user privacy and security through high-level encryption and support for both public and private networks.
  • Gravity framework: This framework empowers organizations and individuals to easily build and deploy custom dApps on the Jupiter platform.

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There are also many features that Jupiter Protocol offers including swapping, liquidity mining, governance features and more:

  • Swap: Core functionality allows users to easily exchange cryptocurrencies with minimal hassle.
  • Liquidity mining: Earn rewards by providing liquidity to the protocol's pools.
  • Governance: JUP token holders will participate in the upcoming Jupiter DAO, granting them voting rights on key decisions.
  • Gravity framework: This framework enables seamless development and deployment of custom dApps within the Jupiter ecosystem.

Jupiter Protocol has a huge potential, but it is important to note it has an unproven track record and long-term viability concerns. It is currently focused on governance, with future use cases still evolving. It also faces competition from established DEXs and other aggregators. Now let's dive into how this all ties into $JUP.

What Is JUP?

Currently, the utility of the JUP token revolves around three main areas:

1. Governance in the Jupiter DAO: JUP token holders will have voting rights to participate in decision-making processes of the upcoming Jupiter DAO. This includes voting on proposals related to protocol upgrades, fee structures, partnerships, and other key aspects of the Jupiter ecosystem. As the DAO gains more prominence, the power to influence the platform's direction through JUP tokens becomes more valuable.

2. Community Incentivization: Jupiter uses JUP tokens to incentivize users and attract new participants to its platform. For example, a portion of the tokens might be allocated to reward users who provide liquidity, participate in governance activities, or contribute to the ecosystem in other ways. This incentivizes engagement and helps drive the growth and adoption of the Jupiter platform.

3. Staking and Potential Future Use Cases: While not currently implemented, staking JUP tokens might be introduced in the future, allowing users to earn rewards for locking up their tokens and contributing to the network's security. Additionally, the team has hinted at plans for integrating JUP into other functionalities within the Jupiter ecosystem, such as discounts on trading fees or access to exclusive features. However, specific details haven't been released yet.

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The development of the Jupiter DAO and its responsibilities will shape the role of JUP in governance. Innovative features and integrations within the Jupiter ecosystem could create new use cases for the token. The overall success of the Jupiter platform and its adoption will ultimately determine the value and utility of JUP tokens.

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Breakdown of Jupiter Token (JUP) Distribution

50% of JUP was allocated for the team, based off of the following:

  • 20% (800M JUP): Vesting for current team members over 2 years.
  • 20% (800M JUP): Strategic reserve for future team, investors, and past stakeholders. Locked in a 4/7 Team Cold Multisig wallet for at least a year, with 6 months' notice required before any liquidity event.
  • 10% (400M JUP): Used for liquidity provision and held in a Team Hot Multisig wallet.

Community Allocation (50%):

  • 40% (1.6B JUP): Distributed over 4 airdrops (1 billion initially, remaining 3 billion held in a 4/7 community cold wallet).
  • 10% (400M JUP): Available for community contributors through grants, held in a 4/7 community hot wallet managed by the Jupiter DAO.

Genesis Launch Details:

  • Initial circulating supply: 1.35 billion JUP (instead of 1.7 billion).
  • Community airdrop: 1 billion JUP.
  • Launch pool: 250 million JUP.
  • Centralized exchange loans: 50 million JUP.
  • Immediate liquidity needs: 50 million JUP.
  • Current Total Supply: 10 billion

Team tokens are subject to vesting and lockups, ensuring long-term commitment. The community receives a significant portion of tokens through airdrops and grants.

Breakdown of Backlash Against Jupiter Airdrop

The Jupiter airdrop, while large and widely anticipated, did receive some notable backlash. Here's a breakdown of the key criticisms:

  • "ICO in Disguise": Critics argued the 250 million JUP launch pool funded by the team resembled an ICO, allowing them to profit by selling tokens into the market shortly after the airdrop. They questioned the fairness of this approach, especially considering the large scale of the airdrop.
  • Market Manipulation: Some worried the launch pool could manipulate the JUP price, potentially harming early adopters who claimed their airdrop tokens.
  • Confusion with Inactive Token: A separate, inactive Ethereum-based token with the same ticker symbol (JUP) spiked in price due to confusion with the actual airdropped token. This led to losses for some traders who mistakenly bought the wrong token.
  • Limited Use Case: Concerns existed about the long-term value proposition of JUP beyond its initial governance role in the DAO. Some felt the token lacked clear utility within the wider Jupiter ecosystem.
  • RPC Node Issues: While the Solana network performed well overall, some users faced challenges with RPC nodes in the first 30 minutes due to high demand. This caused frustration and concerns about scalability.
  • Launch Pool Details: Some argued the information about the launch pool and its potential impact on token price could have been communicated more clearly ahead of the airdrop.

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Jupiter's founder defended the launch pool as beneficial for JUP holders in the long run, emphasizing transparency and adherence to the published tokenomics. The team also addressed user concerns and provided explanations regarding the launch pool and other points. Despite the backlash, the airdrop was largely successful, generating significant interest and showcasing the potential of the Solana network.

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JUP for Speculative Trading: Pros and Cons

Some of the pros of JUP from an investor or traders perspective include:

  • Large Airdrop & Community Hype: The recent massive airdrop generated significant buzz and attracted over a million users, potentially indicating strong early community support and adoption.
  • Promising Project & Features: Jupiter aims to solve challenges like liquidity fragmentation and offers features like Gravity framework for dApp building, potentially attracting users and driving ecosystem growth.
  • Governance & Future Utility: JUP holders can participate in the upcoming DAO and potentially enjoy future benefits within the Jupiter ecosystem as its utility expands.
  • Early-Stage Potential: As a relatively new project, JUP offers the potential for high returns if it gains significant traction and adoption in the future.

Of course with any trade or investment, there comes risk:

  • High Risk & Uncertainty: JUP is a new project with unproven long-term viability. Its success heavily depends on execution, competition, and market conditions, making it a high-risk investment.
  • Limited Current Utility: Beyond governance, JUP's use cases are currently limited. Its long-term value hinges on future developments and integrations within the ecosystem.
  • Volatile Token Price: Speculative airdrops often lead to high initial volatility, potentially amplifying price swings and increasing risk for short-term traders.
  • Team Lockup & Launch Pool: The lockup period for part of the team's tokens and the existence of a launch pool could create selling pressure in the future, impacting the price.

Regulatory changes and competition from other established DeFi projects could negatively impact JUP's development and adoption. Overall market sentiment and broader economic factors can also significantly affect the price of JUP and other cryptocurrencies. Always do you own research before investing into any asset.

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How Our Exclusive In-House Analysts Are Trading $JUP

$JUP

"So our levels are $0.5547, $0.61, $0.69 (noice) and $0.75 for now to focus on. The bearish scenario would be getting back below 61 cents and turning that level into resistance, at that point look to take it short and target $0.5547 with a stop above 63 cents.

For a bullish play, I mean I'm personally long right now currently, and I'm going to cut it if it gets below 61 cents. I'm looking for continuation to $0.655 and then $0.69... $0.655 is an important resistance, you could simply wait for a move above that level and a flip of it into support (retest) to take a long to 69 cents, with a stop below $0.635.

So there is a bullish and a bearish play, but I'm currently long myself right now. But, to be fair I'm scalping in and out quick and that's not easy for anyone to follow, so this is more so for experienced traders who took our courses in the premium discord." -BTC_JAY

Trade Idea 1: Bullish
Entry: Waiting for a break of $0.655 and for it to flip to support
Target: $0.69+
Stop Loss: Below $0.635

Trade Idea 2: Bullish
Entry: Current levels ($0.62)
Target: $0.655, $0.69+
Stop Loss: Below $0.635

Trade Idea 3: Bearish
Entry: Waiting for a break below $0.61 and for it to flip to resistance
Target: $0.5547
Stop Loss: Above $0.63

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