The news about Kaito AI’s crypto intelligence platform and token distribution draws attention from stakeholders who now evaluate how this plan impacts the token’s financial strategy and market dangers.
The platform operates as the definitive Web3 information site and prepares for its initial giveaway event. On February 20 via X the company affirmed that it will give 10% of its total token stock to its early supporters and blockchain network participants. The system distributes tokens to people from both the core Kaito Yapper community and Genesis NFT holders along with the essential partners of the ecosystem.
https://twitter.com/KaitoAI/status/1892518538553835745
Kaito AI Raises Concerns
Kaito AI plans to distribute 56.6% of its total tokens to everyone who uses and supports its platform. This includes the 19.5% designated for short and long-term airdrops and rewards. The new strategy gives prizes to users who participate frequently to make the app more interesting and popular.
The approach shows how Kaito AI moves digital currency promotion to a new industry standard. As blockchain oracle solution expert Marcin Kazmierczak points out Kaito AI’s distribution system introduces fresh dynamics into the crypto market. People analyze the decision for granting many tokens to insiders because this action creates potential selling pressures after the program finishes.
The crypto realm attracts airdrop seeking specialists who farm new airdrops as their professional work. In 2023 when Arbitrum distributed tokens to its community users professional airdrop detectors gathered the tokens worth $3.3 million. Research indicates Kaito AI designed its airdrop process to make professional farming more difficult.
Kaito AI’s Long-Term Viability
Through an onchain investigation RunnerXBT found Kaito AI distributed 43.3% of its total supply to people working for the project and its early supporters. Past experiences show that when insiders rapidly sell their assets after initial excitement fades it weakens a project’s market performance according to market analysts.
The overall market conditions make these worries even more serious. According to market research several analysts predict that Kaito AI’s token will copy a pattern where it jumps up right after release but then collapses quickly later on. Blockchain expert Anndy Lian states many blockchain projects undergo price surges due to hype but afterward face big selling waves.
“As for Kaito itself, I see a classic pattern: big hype, big spike, then a massive sell-off. Even if [the initial supply] is vested (which seems likely with allocations for liquidity and early backers), a lot of folks — especially those who farmed points just before with hyped airdrops: starts high, ends low.”
People showing increasing interest in airdrops during the latest months. On Jan. 15 the HYPE token achieved $7.5 billion in value through its free distribution program proving strong demand exists in the market for this type of giveaway. Market participants will evaluate Kaito AI’s techniques to determine if investors embrace the tokens long-term or use them for quick profits.
The crypto market will use Kaito AI as a test project to understand how tokenomic and distribution models affect other upcoming Web3 projects using airdrops.
