Kaito AI Token Rallies 50% Post-Airdrop Despite Heavy Selling Pressure from Influencers

The Kaito AI (KAITO) token has experienced a remarkable 50% surge in price following its highly anticipated airdrop on February 20, defying heavy selling pressure from top crypto influencers and industry insiders.

Kaito AI’s Impressive Post-Airdrop Performance

Following the airdrop event, which allocated 10% of Kaito AI's total token supply to users, the KAITO token surged over 49.5% in just 24 hours. At the time of writing, the token was trading above $1.74, with a market capitalization surpassing $421 million, according to CoinMarketCap data.

The surge has been significant, despite concerns from the market regarding the potential for insider selling and a heavy supply dump, often seen in the aftermath of large airdrops. In fact, some of the largest recipients of the airdrop, including influential crypto personalities, have been seen liquidating their Kaito holdings almost immediately after receiving them.

Heavy Selling from Crypto Influencers

Several high-profile crypto influencers, or key opinion leaders (KOLs), were major recipients of the airdrop, raising concerns about the impact of their potential sell-offs on Kaito's price. Ansem, a popular crypto influencer, received a staggering $230,000 worth of Kaito tokens and sold off his entire allocation. Similarly, Ethereum educator Anthony Sassano was allocated $185,000 worth of Kaito tokens, which he also sold off entirely. Mert, the CEO of Helius Labs, sold 80% of his allocation, valued at $340,000, as reported by the crypto intelligence platform Arkham on February 21.

The massive sell-offs from these well-known figures had many market participants worried that the selling pressure could cause a sharp decline in the token’s price. Additionally, concerns were raised over the allocation structure of the token supply, which appeared heavily skewed toward insiders.

Insider Allocations Raise Concerns

Onchain analysts, including RunnerXBT, pointed out that a significant portion of Kaito’s total token supply, approximately 43.3%, was allocated to insiders. This included 35% of the supply for the team and 8.3% for early investors. Such allocations are often a red flag for investors, as they can lead to significant price volatility when insiders cash out their holdings. Despite this, the price rally suggests that the market is still willing to support the token, for now.

Kaito AI’s Technology Gains Industry Recognition

Despite the concerns about tokenomics, Kaito AI’s underlying technology has garnered attention within the blockchain space. Marcin Kazmierczak, the co-founder and COO of RedStone, a blockchain oracle solutions firm, praised Kaito AI’s technology, stating that it has become an essential tool for marketers. "I don’t know a single serious marketer that wouldn’t use Kaito stack," Kazmierczak said in an interview.

Kaito AI brands itself as the “ultimate Web3 information platform” and offers solutions for businesses looking to leverage the decentralized web. The project’s technology appears to have real utility, which could explain why the token has held its value despite early concerns about selling pressure.

Scammers Targeting Unwary Investors

As with many airdrop events, scammers have taken advantage of the excitement surrounding Kaito AI by creating fake airdrop claim pages. These fraudulent pages aim to trick unsuspecting investors into sharing their cryptocurrency wallet addresses, potentially putting their funds at risk.

Kaito AI’s official airdrop claim page was shared via the company’s official social media channels, with a claim window open until March 22, 2025. The team has urged users to only interact with official sources to avoid falling victim to scams.

Conclusion

Kaito AI’s token has defied the odds, rising 50% post-airdrop despite significant selling pressure from influencers and concerns over insider allocations. While the long-term outlook for Kaito will depend on the project’s ability to maintain momentum and manage its tokenomics, the current surge in price suggests that investors are still optimistic about the platform’s potential.

As the project continues to gain traction, both the technology behind Kaito AI and the market’s reaction to its token will play a crucial role in shaping its future in the competitive Web3 landscape.