ZKSync’s ZK token price plummeted following a hack. This breach provided bad actors a backdoor to mint and sell tokens. In short, what started on April 15, 2025, with a hacked admin account ultimately gave the hacker control of $5 million worth of unclaimed ZK tokens from the project's airdrop allocation. This exploit resulted in a large-scale sell-off, as the exploit led the token’s price to drop 17% in only half an hour. The bug that led to this has shot new life into worries surrounding the first ZKSync airdrop. This airdrop had already raised eyebrows due to its intended distribution model.
Token Tumble and Market Panic
Just as fast, the market responded in anticipation of the exploit. One large unknown entity managed to mint more than 110 million ZK tokens. They followed this up by immediately selling 66 million, flooding the market and sparking mass panic. In reality, the ZK token’s price fell from $0.0478 to $0.0396 within thirty minutes. This brutal 17% drop caught most long term holders and traders by surprise. The Relative Volatility Index (RVI) hit the ceiling, shifting from 18.68 to 72.81 in one hour. This jump reflects the unprecedented price volatility currently rocking the market.
Fortunately for users, the ZKSync team has confirmed that this exploit only affected the airdrop contract. This leak did not affect the underlying ZKSync protocol or users’ wallets. In their statements, they highlighted the differences between the ZKSync protocol and the ZK token smart contract.
Airdrop Distribution Under Scrutiny
The ZKSync air drop that occurred in June 2024 has been the most controversial airdrop from the beginning. The airdrop distributed 3.675 billion ZK tokens, or 17.5% of the supply of 21 billion total ZK tokens, among 695,232 unique wallet addresses. An eligible wallet received anywhere from 450 to 100k ZK tokens.
Indeed, critics have pointed to a huge shortcoming with the distribution. They discovered that more than half of the total value of the airdrop went to fewer than one percent of the users. The upcoming concentration of tokens also raised concerns about investor protection and potential market manipulation. These concerns have now been confirmed, by none other than the recent exploit itself.
Zener, who founded Modularity, shared criticism of ZKSync. He called the project’s development path similar to that of Mantra’s OM token. Mantra’s OM token suffered an extreme 98% implosion, a curse which Zener was terrified ZKSync may be on the path to suffering.
Security Measures and Future Steps
Our security team is engaged in ongoing investigation and has more details on this breach. They are taking action to ensure that things like this don’t occur again. While the affected admin account has been locked down, we’re reviewing and updating our security measures and protocols.
While the team maintains that the core ZKSync protocol remains secure, the incident has undoubtedly damaged trust in the ZK token and its management. It’s too soon to tell what the long-term effects on the project’s reputation and the token’s value will be.
