On June 17, 2024, ZKSYNC will be listed on Binance and other major cryptocurrency exchanges. Starting today at 7 AM, $ZK tokens will be claimable, with nearly 700,000 wallets eligible for the airdrop. As a Layer 2 ZK rollup, ZKSync Era utilizes cryptographic validity proofs to enable scalable and low-cost transactions on Ethereum, providing users with the same security guarantees as the Ethereum mainnet.
With 400 million transactions and over 7 million addresses, ZKSync Era boasts a transaction cost of just $0.01 and a current total value locked (TVL) of $766 million. In this article, we’ll delve into the funding and fully diluted valuation (FDV) of ZKSync and related projects to predict the $ZK token’s launch price and potential to reach $1.
ZkSync Funding & Investors
ZKSYNC has raised an impressive $458 million in funding across multiple rounds from top-tier investors, including Dragonfly Capital, a16z, ConsenSys, and Blockchain Capital. While the exact valuations for each funding round are not publicly disclosed, we can make educated assumptions based on the amounts raised to estimate the potential price prediction for the $ZK token on its listing date.
Breakdown of ZKSYCN Funding Rounds
- Seed Round: $2 million (September 2019)
- Series A: $6 million (October 2021)
- Series B: $50 million (November 2021)
- Additional Round: $200 million (January 2022) by BitDAO (Ecosystem Round)
- Series C: $200 million (November 2022)
Total Raised: $458 million
To estimate the potential valuation of these funding rounds, we will consider two scenarios.
ZKSycn Probable Valution Scenario 1:
- Seed Round: 1% dilution, raising $2 million at a $200 million valuation
- Series A: 1.2% dilution, raising $6 million at a $500 million valuation
- Series B: 3.33% dilution, raising $50 million at a $1.5 billion valuation
- ByBit Round: 6.67% dilution, raising $200 million at a $3 billion valuation
- Series C: 5% dilution, raising $200 million at a $4 billion valuation
In this scenario, the last known valuation is $4 billion, which represents a conservative estimate.
ZKSycn Probable Valution Scenario 2: Competitor Comparison (Starknet’s Valuation)
Starknet, a competitor, raised $225 million with a 17% dilution, reaching an $8 billion valuation according to TechCrunch. Using this as a reference:
- Seed Round: 1.7% dilution, raising $2 million at a $117.5 million valuation
- Series A: 3% dilution, raising $6 million at a $200 million valuation
- Series B: 5% dilution, raising $50 million at a $1 billion valuation
- ByBit Round: 5% dilution, raising $200 million at a $4 billion valuation
- Series C: 2.5% dilution, raising $200 million at an $8 billion valuation
While we lack precise valuation data, these assumptions provide a reasonable basis for estimating the potential market value of ZKSYNC at the time of its listing.
ZKSYNC Price Prediction at Listing
When it comes to predicting ZKSYNC’s price at listing, there are a couple of scenarios we can consider:
ZKSycn Lower Valuation
- What might happen when $ZK token launches: Initially, people who received the $ZK airdropped tokens might sell them off quickly to take profits. This could cause the price to dip a bit.
- Expected outcome: Even with this initial selling pressure, ZKSYNC is likely to stay around a valuation of at least $8 billion. This would put the token price somewhere between $0.38 and $0.40.
ZkSync Higher Valuation
- What might happen: If the market is more optimistic and values ZKSYNC highly, we could see a much higher starting price.
- Expected outcome: At a $21 billion valuation, the $ZK token could list at around $1. In a very optimistic scenario, where the valuation hits $42 billion on the first day, the token price could reach $2.
$ZK Token Valuation Most Likely Scenario
Realistically, ZKSYNC might settle around a $20 billion valuation on the first day, with the token price being just under $1.
Can the $ZK Token Reach $1 on Day 1?
Yes, it’s quite possible for the $ZK token to hit $1 on the first day of trading. However, a more balanced expectation would be a fair value around $0.70. From there, the price has room to grow as more people start using and investing in the project. In summary, while there could be some initial ups and downs, the long-term outlook for ZKSYNC looks promising, with a good chance of steady growth after the initial excitement settles.
Is the $ZK Token a Scam?
There’s been a lot of chatter online about the $ZK token being a scam, but let’s set the record straight: it’s not. Most of these accusations come from people who didn’t qualify for the airdrop. These are often “airdrop farmers” who were excluded based on ZKnation’s criteria. ZKSync, developed by Matterlabs, is a reputable project in the blockchain space. So, don’t let the unfounded rumors sway you.
What to Do with Your $ZK Airdropped Tokens?
If you received $ZK tokens from the airdrop, you might be wondering whether to sell them or hold onto them. Taking profits is always an option, and there’s nothing wrong with that. However, it’s important to recognize that $ZK is not a scam token. Based on current projections, the price is expected to stabilize around $0.50 to $0.70 in the long term.
If the price drops below $0.30, it could be a good entry point, as this would value the project below $6 billion. Keep in mind that the major investors backing ZKSync are looking for significant returns, likely aiming for 10-50x gains. For Series A investors, returns of 40-50x might be the goal.
When deciding what to do, consider your risk tolerance and investment strategy. Remember, only 17% of the tokens were airdropped. There’s still about 50% of the tokens that will be distributed to the community through various participation programs. To get involved in these, you’ll need $ZK tokens, especially with the upcoming “ZK Summer.”
In conclusion, whether you decide to sell or hold, make sure your decision aligns with your overall investment strategy and risk appetite. The future for ZKSync looks bright, and being informed will help you make the best choice for your situation.
