Solstice’s SLX tokens lost more than 40% of their value within hours of their launch on May 25, as airdrop claimants flooded the market with sell orders during a token generation event (TGE) for the Solana-based protocol.
The token opened for trading on Binance Alpha at 12:00 UTC with a fully diluted valuation near $230 million, according to reports. However, within minutes, the SLX was down nearly 30% from its highs in the first trading. by the time Marked by CoinGecko Decline Later in the day, the decline had exceeded 40%.
Who got the SLX airdrop?
Binance wallet It made an announcement that users with at least 215 Alpha Points can claim 250 SLX tokens on a first-come, first-served basis.
Each claim costs 15 Alpha Points, and unpooled tokens lower the limit by five Alpha Points every five minutes. Furthermore, recipients had 24 hours to confirm or be forfeited.
Another claims portal was opened for users who earned Flares (Solstice reward points before TGE) or participated in the public sale at 13:00 UTC, which was one hour after Binance Alpha trading began, according to the protocol’s TGE documentation. Token listings on other CEX exchanges and DEXs, including Kraken, Gate, OKX, MEXC, Bitget, and PancakeSwap, followed at 14:00 UTC.
Do airdrop sellers affect the token price?
Research by OneSafe found that around 64% of airdrop recipients sell their tokens immediately after distribution, and 88% of airdrop tokens lose value within three months, making the current turn of events all too familiar.
Linea’s September 2025 TGE It saw a similar trajectory as the LINEA token fell more than 33% in its first hours as whale wallets canceled allocations into DEXs, according to Cryptopolitan.
JUP code for buyer Another incident sets a precedent, as the Solana DEX pool distributed 700 million tokens in January 2025. Unfortunately, JUP stock fell 6% on launch day and eventually fell 59% from its all-time high.
Do the fundamentals of the protocol conflict with the reality of the market?
Solstice is known for its strong on-chain metrics, and TGE entered with that strength. The protocol holds $397.92 million in total value locked (TVL) as of May 25, backed by USX, one of Solana’s largest synthetic stablecoins.
Three days before the token launch, the NYSE-listed exchange Bullish (NYSE: BLSH) had done so Allocated capital to Solstice’s eUSX return strategy, pushing TVL past $400 million and adding to an institutional base of more than 30 allocators.
Despite its strong position, the SLX still suffers from day one price discovery. It currently has a market capitalization of $64 million and its price set at $0.20 after the sell-off.
However, these fundamentals did not save the SLX from day one price discovery. Devilama places The token has a market capitalization of $64 million and a price of $0.20 after the sell-off, for a fully diluted valuation of $198.3 million.
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