A new Solana-based project, Jito, is making waves in the crypto community. A staking protocol launched an airdrop allowing users to claim 90 million JTO governance tokens, valued at approximately $165 million.
Its JTO token was released to the market yesterday, December 7, and has already shown a tremendous performance of 2,327%. Is this only the initial market excitement or the starting price discovery?
JTO tokens were distributed based on users’ holdings and lending of Jito’s JitoSOL token, with additional rewards for validators and MEV searchers. JTO tokens are intended to govern the DAO and manage the treasury of the staking platform.
The JTO airdrop has equipped Jito’s DAO with a governance token and a $490 million treasury in JTO. The airdrop allocation was based on a “points” system, potentially yielding significant returns for participants. This strategy follows the trend of other DeFi protocols like Uniswap, which distributed governance tokens to its users.
JTO token started at $0.15, and in a matter of minutes upon listing, it rose to nearly $5, which is its highest point. This is a common phenomenon when the new cryptocurrency gets listed, buy orders come in, and chasing occurs. It can be attributed to price discovery, but in the short term, the bullish momentum will likely continue.
Looking at the wave structure, we saw the first correction as the price dropped to $1.7 yesterday, but the uptrend continued. From this first low, we can count the next advancement and see an ascending channel being formed, although still unconfirmed.
Today, the price made its second higher low at just below $3 and bounced to the upside to a higher high. This means we are seeing an uptrend leading to higher JTO prices. Considering the limited price history, it is still early to discuss a potential target; however, if a new uptrend starts today, we expect it to surpass its previous high of $5 and potentially go above $7 for the next one.
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