Kaito Token Soars 50% Post-Airdrop Amid Insider Selling concerns

Kaito Token Defies Selling Pressure, Surging 50% After Airdrop

The excitement surrounding Kaito AI’s latest token launch has not waned, even in the face of significant insider selling. Since its highly anticipated airdrop on February 20, the KAITO token has experienced a remarkable 50% increase in value, defying expectations that heavy sell-offs from key opinion leaders (KOLs) and insiders might suppress its momentum.

Kaito AI, a crypto intelligence platform that positions itself as the “ultimate Web3 information platform,” initiated its token distribution by allocating 10% of its supply to the airdrop. Looking ahead, an additional 20% is earmarked for future community incentives and engagement, underscoring the project’s commitment to fostering a robust and engaged user base. Despite concerns over the concentration of tokens in insider hands, the asset’s bullish trajectory remains unshaken.

As of the latest data retrieved from CoinMarketCap, the Kaito token has climbed over 49.5% in just 24 hours, reaching a price of approximately $1.74 with a total market capitalization surpassing $421 million. Such a dramatic upswing, despite the aggressive selling from some of its largest recipients, has sparked both optimism and scrutiny as traders and analysts assess its long-term viability.

Prominent Crypto Figures Sell Their Kaito Allocations

One of the most debated aspects of Kaito’s token distribution strategy has been the level of insider participation. Within hours of the airdrop, several well-known crypto personalities liquidated their allocations, raising questions about the token’s actual demand.

Popular crypto influencer Ansem, for example, quickly offloaded his entire allocation, which was valued at approximately $230,000 at the time of sale. Similarly, Ethereum educator and investor Anthony Sassano did not hesitate to sell all his Kaito tokens, cashing out $185,000 worth. Meanwhile, Mert, the CEO of Helius Labs, sold roughly 80% of his holdings, realizing a substantial $340,000, according to a February 21 post on X by blockchain intelligence platform Arkham.

Concerns over the token’s distribution had been voiced earlier by on-chain analysts, who highlighted the high percentage of supply controlled by insiders. Investigative trader RunnerXBT pointed out that a staggering 43.3% of Kaito’s total supply was allocated to early investors and the project’s core team. Specifically, 35% of the total supply was set aside for the team, while another 8.3% went to early investors. Such allocations raised fears about potential price manipulation, as insiders effectively held a large portion of liquidity.

Nevertheless, this skepticism has not deterred the broader community from acknowledging Kaito AI’s technological strengths. The company’s intelligence platform has been widely regarded as a powerful asset in the Web3 ecosystem, earning praise from key industry players. Marcin Kazmierczak, co-founder and chief operating officer of blockchain oracle solutions firm RedStone, reinforced this sentiment.

Scammers Exploit Kaito Hype with Fake Airdrop Pages

Predictably, the surge in interest surrounding the Kaito airdrop has attracted opportunistic scammers looking to exploit eager investors. Reports have surfaced of fraudulent websites designed to mimic Kaito AI’s legitimate airdrop claim page, with malicious intent. These fake sites typically lure users into submitting their cryptocurrency wallet details, putting their digital assets at risk.

To combat misinformation and ensure user safety, Kaito AI has taken measures to direct users to its official airdrop page. In a February 20 post on X, the company explicitly shared the legitimate claim page, which will remain accessible for eligible recipients until March 22.

As Kaito AI continues its rise within the crypto ecosystem, the project faces both opportunities and challenges. While doubts over tokenomics persist, the platform’s increasing adoption within the industry and sustained price action signal strong demand. In the unpredictable world of cryptocurrency, Kaito’s early success serves as another testament to the market’s ever-evolving landscape and the power of innovation, influence, and community engagement.