Controversial Changes to Polkadot-Based Memecoin Airdrop Spark Community Backlash
The recent alterations made to the airdrop of the new Polkadot-based memecoin DED have caused widespread criticism within the community. This backlash comes after the initial allocation was significantly reduced.
Initially, the airdrop allocation accounted for 100% of the token supply. However, it was later decreased to just 5%. The reasoning behind this decision was to provide the memecoin with a longer financial runway, as explained by one of its developers, Giotto De Filippi, during a recent X Spaces event.
The buzz around DED began on March 23 when members of the Polkadot community launched the memecoin in an attempt to take advantage of the memecoin craze and attract more attention to the Polkadot ecosystem. Investors who held Polkadot (DOT) were eligible to receive 36 DED tokens for every 1 DOT held.
However, retail sentiment quickly turned negative following the reduction in the initial airdrop allocation. Orlando, a pseudonymous crypto investor, expressed his concerns on X in a post on March 23.
According to data from Dune, over 85% of the DED airdrop supply has already been claimed, with more than 1.3 million eligible addresses participating. Unlike other popular memecoins, the airdropped supply of DED will be frozen until future exchange listings in order to minimize sell pressure.
The launch of this Polkadot-based token coincides with a surge in retail interest in memecoins. For instance, Book of Meme (BOME) experienced a staggering 1,100% increase on the weekly chart, briefly becoming the 130th-largest token by market capitalization.
BOME is just one of many new memecoins that raised funds for unreleased coins through a controversial presale model. In the three days leading up to March 18, presales for these Solana-based memecoins generated over $100 million worth of Solana’s (SOL) token.
Other blockchain networks are also attempting to capitalize on the memecoin frenzy. The Avalanche Foundation recently announced a $1 million liquidity mining incentive program for Avalanche-native memecoins and community-owned tokens.
As the memecoin craze continues, it remains to be seen how these developments will shape the landscape of the cryptocurrency market.