Excitement turns to concern as Sonic Airdrop Season 1 officially went live today, but meets a brutal market reaction. What should users do next?
With over 80 million $S tokens up for grabs, many early users were eager to claim their rewards from the airdrop.
Instead of a celebration, that day melted down. Just a few hours after the claim went live, the $S token price crashed hard — dropping down 9% to around $0.3677. Volumes soared over $197 million with heavy selling occurring according to CoinMarketCap.
So what went wrong? Was the airdrop too generous? Or is this just short-term panic? Let’s break down what’s really happening and how to claim your tokens without losing value.
This is not just another free token drop. The platform is distributing 42.4% of the 190.5 million $S airdrop allocation, rewarding real activity on its mainnet. No fake signups. No empty wallets.
Instead, the airdrop is split between:
Gems — rewards for apps and builders
Points — rewards for users and participants
Users can now claim 25% of their tokens instantly, while the remaining is locked with a vesting schedule — either for 90 or 270 days. And here’s the twist: early claims of vested tokens come with a burn penalty.
In my opinion it's: Too many tokens, too fast. Well, the actual reasons behind why the $S crypto price drop dramatically just after this giveaway announcement:
Sudden liquid unlock: Over 27.75 million $S tokens became instantly claimable, causing selling pressure.
Vested 75% tokens panic: The ERC-1155 NFT model used for vesting added complexity for new users, triggering early sells.
Source: Sonic Labs X Account
General volatility: With daily volume surging to $197.49 million (+10.39%), whales may be rotating out.
Sonic Labs burned 100% of their 1.86M token allocation — worth over $754,000 — just before the free rewards went live.
Together, it led to a $S token price crash of nearly 9% — all within 24 hours of launch.
Redeeming your $S is simple — just don’t rush it.
Visit the official redeem page.
Connect your wallet.
Check your eligible rewards under Gems or Points.
Claim the liquidity 25% today.
Hold the ERC-1155 NFT for the rest — or unlock early with a penalty.
This is your moment to make a smart move, not a fast one.
Currently, the $S token is under pressure. But this might just be temporary.
Short term Expectations: High volatility as users sell or burn.
Mid term: If more holders wait, supply gets tighter, then the price could recover.
Target zone: A bounce back to $0.45–$0.50 is possible if burn rates stay high and demand returns.
The Sonic Labs airdrop claim is live, and consists of real rewards, a strong burn mechanism, and a clever vesting model that shows this is more than just a giveaway.
But at the same time, the $S token price crash is a clear signal: the market is watching closely. As per my analysis being a crypto writer for a long term now, this kind of giveaway usually rewards the patient and punishes the hasty. So if you’re eligible, unlock your tokens smartly. The real gains may come to those who wait.
Sara Sethiya is an experienced crypto journalist with five years of experience in blockchain research, price movements, and market analysis. With a background in mass communication and journalism, she specializes in data-driven news articles, in-depth market reports, and SEO-optimized content. As a team lead and content writer at CoinGabbar, she examines on-chain metrics, evaluates liquidity trends, and analyzes tokenomics to uncover market patterns. Her analytical approach helps traders and investors interpret market shifts, identify potential opportunities, and understand the broader impact of blockchain innovations on the financial ecosystem.