The ZKL token was listed on popular centralized crypto exchanges (CEX) such as Bybit, Hashkey, BitGet, KuCoin, and Gate.io. However, something went wrong and after a short time, the cryptocurrency quotes dropped by more than 35%
zkLink is a layer 3 (L3) project based on the Ethereum blockchain that launched its native token ZKL on some major CEXs. Meanwhile, segment leaders Binance, Coinbase, and Kraken did not list the new asset.
ZKL Collapses After Listing
Literally a few minutes after entering popular cryptocurrency exchanges, the ZKL token rate dropped significantly. At one point, it lost almost half of its value – about 45%. Then the cryptocurrency managed to correct itself a little.
At the time of writing, the token’s intraday losses amount to just over 35%. ZKL is trading at $0.48.
ZKL token dynamics after launch. Source: BIC
The token was also significantly under pressure to sell. The market generally reacted weakly to the launch of ZKL, even though the asset plays a key role in the zkLink ecosystem and has several real-world use cases.
zkLink’s idea
zkLink is a L3 protocol in the Ethereum ecosystem. Its goals include the introduction of aggregated rollups and layer 3 solutions. These initiatives are aimed at increasing the functionality of the blockchain and facilitating the use of Web3 applications.
The launch of its own token was supposed to be a key stage in the development of the project. Thus, as plannedthe ZKL token is designed to perform the following functions:
- Subsidize gas costs in the zkLink Nova network.
- Fund zkLink X’s App Rollup infrastructure service.
- Grant hodlers management rights – that is, allow them to influence the future development of the project.
Vince Young, CEO of zkLink, told BeInCrypto a little more about the new token:
Unlike ZKL, listing was not a problem for another token, Banana Gun (BANANA). After its listing on Binance, the asset’s price jumped by more than 50%.
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Source: Cryptocurrency
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