The highly anticipated ZK token airdrop from Ethereum Layer 2 scaling solution ZKSync has erupted into a full-scale community crisis. Intended as a reward for its 7 million users, the distribution has instead trended under the hashtag #ZKscam, with allegations of unfair criteria, exclusion of major contributors, and disproportionate rewards for suspected bot networks. This backlash threatens the foundational trust in one of crypto’s most promising scaling projects and underscores the perilous execution of token launches.
about ZKSync Airdrop Backlash: #ZKscam Trends as Community Feels BetrayedMatter Labs
0 in Finance and 0 in Crypto last weekInstitutions Need System-Level Privacy for Blockchain Adoption
Financial institutions are actively exploring blockchain technology for settlement but face a critical privacy barrier that could determine widespread adoption. According to ZKsync developers, system-level privacy represents the essential missing piece for institutional blockchain implementation. This institutional focus on privacy solutions emerges as privacy-focused tokens demonstrated remarkable resilience during recent market volatility, though most public discussion has centered on consumer applications rather than enterprise needs.
about Institutions Need System-Level Privacy for Blockchain AdoptionPolymarket & Kalshi Hit $1B+ Valuations, Ethereum Prover Unveiled
Prediction market platforms Polymarket and Kalshi have achieved significant valuations of $1 billion and $2 billion respectively, signaling growing investor confidence in alternative financial platforms. In technical developments, Matter Labs unveiled a new single-GPU Ethereum prover, promising faster transaction verification. On the governance front, Jupiter has temporarily suspended DAO voting due to internal turmoil, even as the platform prepares for upcoming product releases. These developments highlight the rapid evolution of crypto markets, from infrastructure improvements to governance challenges in decentralized organizations.
about Polymarket & Kalshi Hit $1B+ Valuations, Ethereum Prover UnveiledZKSync Airdrop Backlash: #ZKscam Trends Amid Community Outrage
ZKSync, a Layer 2 Ethereum scaling solution by Matter Labs, faced severe backlash after its ZK token airdrop on June 17, 2024. Despite a community of 7 million users, only 695,232 wallets qualified due to stringent criteria, while Sybil accounts allegedly claimed over 2 million tokens. Social media erupted with the hashtag #ZKscam as long-term users, including high-volume traders and even the Element NFT Marketplace, were excluded. Matter Labs’ defense of the selection process only fueled further anger, damaging ZKSync’s reputation. The incident underscores the importance of transparency and fairness in crypto projects, as even promising platforms risk losing community trust.
about ZKSync Airdrop Backlash: #ZKscam Trends Amid Community OutrageZKsync Recovers Hacked X Account, Token Drops 8%
ZKsync and Matter Labs faced a security breach when their official X accounts were hacked via compromised delegate access, spreading fake SEC warnings and an airdrop scam. The team quickly disconnected all delegate apps, deleted malicious posts, and restored control. The incident caused ZK token prices to drop 8%, though the project remains focused on technological advancements like full EVM equivalence, the ChonkyBFT consensus protocol, and QuarkID integration for secure digital identities. The hack highlights security risks in delegated access, but ZKsync’s rapid response and transparency aim to rebuild trust.
about ZKsync Recovers Hacked X Account, Token Drops 8%ZKsync, Matter Labs X Accounts Hacked in Phishing Scam
On May 13, the X accounts of Ethereum layer 2 network ZKsync and its developer Matter Labs were hacked, with attackers posting fraudulent messages claiming the platform was under investigation by the US Securities and Exchange Commission (SEC) and facing potential Treasury Department sanctions. The hackers also shared links to a fake airdrop, likely as part of a phishing scam. ZKsync confirmed the breach and warned users not to interact with suspicious posts. The incident appears to be an attempt to destabilize the ZK token by spreading misinformation and luring users into scams.
about ZKsync, Matter Labs X Accounts Hacked in Phishing ScamZKsync Recovers $5.7M in Stolen Tokens After Hacker Deal
The ZKsync Association confirmed the recovery of $5.7 million in stolen tokens after a hacker breached the airdrop distribution contract on April 15. The hacker agreed to return 90% of the funds, keeping a 10% bounty, and transferred the assets back within a 72-hour window. The recovered amount exceeded the initial theft due to rising token prices, with ZK and ETH increasing by 16.6% and 8.8%, respectively. Despite the recovery, ZK token prices remained largely unaffected. ZKsync Era, an Ethereum layer-2 solution, continues to operate with nearly $59 million in total value locked.
about ZKsync Recovers $5.7M in Stolen Tokens After Hacker DealZKsync Admin Hack: $5M Tokens Minted, Security Concerns Rise
ZKsync confirmed a security breach where an admin account was exploited to mint 111M ZK tokens, transferring over $5M to an unauthorized wallet. The exploit targeted the ‘sweepUnclaimed()’ function in the airdrop contract, sparking criticism over security lapses. Despite assurances that user funds and the core protocol were unaffected, the incident eroded confidence, causing a drop in ZK token prices and TVL. However, ZKsync’s technology retains institutional interest, evidenced by UBS’s gold tokenization trial and partnerships with firms like Lagrange. The project remains a liquidity hub, but the hack and market pressures have left the community questioning its trajectory.
about ZKsync Admin Hack: $5M Tokens Minted, Security Concerns RiseZKsync Admin Wallet Hacked in $5M Airdrop Exploit
A hacker exploited a compromised admin account tied to ZKsync’s airdrop contracts, minting 111 million ZK tokens (worth ~$5M) from unclaimed allocations. The breach was isolated to distribution contracts, leaving protocol operations and user funds unaffected. The attacker swapped $3.5M of stolen tokens to ETH, while ZKsync collaborates with exchanges and SEAL 911 for recovery. ZK token prices dropped 8.6% post-exploit, compounding its 90% decline since launch. Matter Labs CEO Alex Gluchowski attributed the slump to broader market trends, reaffirming commitment to ZKsync. The team plans a post-mortem after security reviews, though the exploit’s limited scope highlights key management vulnerabilities.
about ZKsync Admin Wallet Hacked in $5M Airdrop ExploitZKcandy Launches Ethereum Gaming Mainnet with $4M Backing
ZKcandy, a new Ethereum layer-2 scaling network co-developed by iCandy Interactive and Matter Labs, has launched its mainnet following a testnet phase that saw 2.46 million wallets created. The platform, which secured $4 million in seed funding led by Wemix and Animoca Ventures, integrates blockchain and AI to enhance mobile gaming with features like dynamic storylines and unique NPCs. Eight games, including Pepe Kingdom and Sugar Rush, are now live. ZKcandy plans to allocate 5% of its native token supply for promotions and launch a developer grant program, positioning itself as part of the interoperable Elastic Chain alongside networks like Abstract and Cronos. CEO Kin Wai Lau emphasized the goal of making blockchain gaming accessible and seamless for all players.
about ZKcandy Launches Ethereum Gaming Mainnet with $4M BackingUBS Tests Key4 Gold Program on Ethereum’s zkSync Layer 2 Network
UBS, Switzerland’s largest bank, is piloting its Key4 Gold program on the zkSync Validium testnet, aiming to enhance tokenization of real-world assets on Ethereum-like blockchains. This proof of concept showcases gold token issuance and transaction processing, leveraging zkSync’s privacy and scalability features. UBS continues to explore blockchain’s potential to innovate financial offerings, addressing challenges in scalability, privacy, and interoperability.
about UBS Tests Key4 Gold Program on Ethereum's zkSync Layer 2 Network