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Lighter Airdrop Allocation Explained: How LIT Tokens Were Distributed?

Lighter Airdrop Allocation Drives LIT Price Action

Lighter Airdrop Allocation Triggers LIT Price Rebound After Sell-Off

The Lighter Airdrop Allocation recently turned into one of the talking subjects in the crypto market. 

Lighter, a decentralized trading platform, distributed around $675 million worth of LIT tokens to early users according to Bubblemaps. This made it the 10th-largest crypto airdrop ever. As expected, many users sold their free tokens at first, causing the price to fall. But now, things are starting to look more stable.

Lighter Airdrop distribution

Source: Bubblemaps X 

What Is the Lighter Airdrop Allocation?

The Lighter Airdrop Allocation was created to reward people who supported the platform early. Users earned points mainly by trading on Lighter. Later, these points were converted into LIT tokens. 

The project clearly shared how tokens are divided. 

  • 50% of the total supply is reserved for the ecosystem, which includes users and future rewards. 

  • The other half is locked for the team and investors, with a long vesting period. 

  • From the ecosystem share, 25% was used only for the points-based rewards.

The remaining ecosystem tokens are planned for future reward seasons and partnerships. This shows the project is thinking beyond just one airdrop and wants to keep users active over time.

The official LIT airdrop page shows that, the project had accrued a total of 5 million tokens, and have been marked as live on the page. Users can check their allocation on the official site by connecting a wallet, and as such, it is clear that it follows a usage-based structure. 

Image title

Source: Official Website 

Founder Clears the Confusion

After the airdrop, some people raised questions about who received tokens and why. To clear things up, Lighter founder vladn.eth shared a message on Discord.

  • He explained that less than 10% of the allocation is linked to activities that are not related to trading. 

  • One part involved a deal made before the private beta in late 2024. 

  • A third-party liquidity provider agreed to supply up to $5 million to help early trading run smoothly.

The project confirmed there are no personal or financial connections with this provider. The goal was simply to reduce early risk and improve trading experience.

Jump Crypto’s Role Explained Simply

Earlier reports also showed that Jump Crypto helped with market-making on the project. For this support, Jump received 9.285 million LIT coins, which is about 0.93% of the total supply.

This was not part of user rewards. It was given to support trading activity and liquidity. Many exchanges and platforms follow similar arrangements during early stages.

Why LIT Price Is Going Up Again?

After listing near $3.40, LIT dropped almost 30% as the early beneficiaries sold their tokens. Recently, the price recovered to around $2.68, showing that selling pressure has slowed down.

Lighter Price Chart

Source: CoinMarketCap 

Another major reason behind this recovery is Justin Sun’s buying activity. 

On-chain data shows wallets linked to him bought 13.25 million LIT, worth about $33 million. This alone now accounts for more than 5% of the circulating supply, which makes available supply tighter.

Things improve when large investors enter markets like this.

How Airdrop Could Affect LIT Moving Ahead

Looking at the Lighter price prediction

Short-term, it is also likely to remain volatile because some people are selling. Although, heavy selling appears to be completed.

If the value of the token remains above the level of $2.60, it will probably approach the range of $2.80 to $3.00 once again. For the long-term growth of the company and the increase in value of the shares of Lighter's oil and gas services platform. 

Disclaimer: This article is for informational purposes only, kindly do your own research before investing in the crypto markets. 

Muskan Sharma

About the Author Muskan Sharma

Expertise coingabbar.com

Muskan Sharma is a crypto journalist with 2 years of experience in industry research, finance analysis, and content creation. Skilled in crafting insightful blogs, news articles, and SEO-optimized content. Passionate about delivering accurate, engaging, and timely insights into the evolving crypto landscape. As a crypto journalist at Coin Gabbar, I research and analyze market trends, write news articles, create SEO-optimized content, and deliver accurate, engaging insights on cryptocurrency developments, regulations, and emerging technologies.

Muskan Sharma
Muskan Sharma

Expertise

About Author

Muskan Sharma is a crypto journalist with 2 years of experience in industry research, finance analysis, and content creation. Skilled in crafting insightful blogs, news articles, and SEO-optimized content. Passionate about delivering accurate, engaging, and timely insights into the evolving crypto landscape. As a crypto journalist at Coin Gabbar, I research and analyze market trends, write news articles, create SEO-optimized content, and deliver accurate, engaging insights on cryptocurrency developments, regulations, and emerging technologies.

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