Babylon (BABY) Airdrop Goes Live but Not Without Backlash

Key Takeaways

• Babylon (BABY) had its Token Generation Event (TGE) on April 10.
• There is controversy surrounding the airdrop value and allocation.
• Was the Babylon airdrop successful, and what’s next for the BABY price?
• Interested in buying or selling Babylon (BABY)? Read our review of the best exchanges to buy and sell Babylon (BABY).

On April 10, the Babylon Foundation announced its TGE with a successfully executed airdrop.

Phase 1 stakers, including Non-Fungible Token (NFT) holders, got 6% of the supply .

Binance supported the airdrop and has listed the BABY token.

There has been controversy surrounding the Babylon airdrop value and its tokenomics.

Let’s analyze the BABY airdrop and its price movement to see what lies ahead.

What is Babylon?

On April 10, the Babylon team announced that Babylon Genesis was live. It claims to be the world’s first Layer-1 blockchain secured by Bitcoin.

It aims to give Bitcoin holders passive yield by using BTC as economic security for Proof-of-Stake (PoS) chains like Ethereum or Solana.

According to the team , “This launch cements the Babylon Bitcoin staking protocol as the foundational infrastructure layer for Bitcoin and the most impactful staking solution in the web3 ecosystem”.

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Shortly after its launch, Babylon launched its decentralized exchange called Tower and IBC Eureka to connect to Ethereum.

Despite its announcements, users are unhappy with the airdrop value, which is allegedly only a third of the NFT  floor value.

Others who have staked BTC are unsatisfied with their 0.6% return on investment (ROI) for a six-month staking period.

There is also concern about the BABY tokenomics since insiders hold 66% of the total supply .

Moreover, there is an 8% annual inflation split evenly between BABY and BTC stakers.

Moreover, the fact that BTC stakers do not receive BTC but rather the native token of the PoS chain could cause selling pressure in the latter since holders are likely to swap the yield they receive for BTC.

However, others are not worried about the high allocation of insiders . They cannot stake their tokens during the one-year lock-up period.

Previously, insiders have staked and dumped their yield on retail, causing supply pressure.

What About the BABY Price?

The BABY price reached its all-time high of $0.125 shortly after its launch but has fallen since.

BABY trades close to the resistance trend line of an ascending parallel channel.

Whether the price breaks out is key for determining the future trend.

If the channel rejects the BABY price, the increase will likely be an A-B-C corrective structure (red).

On the other hand, a successful breakout will mean the increase is a five-wave upward movement (green).

So, whether the BABY price breaks out from the channel can be key in determining the future trend.

Mixed Reaction

Babylon is an interesting project that aims to tap into a large pool of Bitcoin stakers.

While the airdrop had controversy, it was not wholly unsuccessful.

The BABY price trades inside a short-term corrective pattern whose resolution can determine the future trend.