A number of wallets associated with Just Sun have silently made a quite large place in the newly launched LIT token by Lighter. The on-chain data has revealed that the purchases were linked to liquidity provisioning instead of airdrop farming.
The on-chain researcher MLM released its analysis on Jan 1, revealing that 4 wallets linked with Justin Sun accumulated 1.6 million LIT soon after the token generation event, taking the amount to about 6.4 million LIT, whose value is said to be around $17 million as per the current market rate.
The wallets’ funding took place 34 and 50 minutes after the closing of the Lighter airdrop allocation form. However, there is no proof that the wallets also participated in earlier points farming.
Adding more to this, the activity deposits around $200 million into the Lighter’s Liquidity Provider Program. Further, he took out about $38 million, using around $33 million to buy an extra 13.25 million LIT on the market. Totalling this, the wallets now have 14.89 million LIT, sitting at $39.8 million.
A Dig Into LIT
With this, Sun has around 5.32% of the circulating supply and 1.33% of the total supply. About $5.5 million stays in spot balances associated with the same group of wallets. The data has also dropped hints that similar arrangements may persist for other big LLP participants. A wallet deposited $50 million USDC in the programme and, after around a month, got 874,875 LIT via attribution.
Lighter rolled out LIT on December 30, an efficient, long-lasting futures DEX made as an Ethereum zk-rollup. With the launch, 25% was launched to early users and liquidity providers, quickly taking the circulating supply to around 250 million tokens.
After the launch, LIT is under the pressure because of liquidity withdrawals and post-airdrop profit-taking, which usually can be seen for new tokens having wide distributions. The debut price stood at around $3.40 at the time of initial trading but soon experienced volatility, falling around 30% to $2.45-$2.80.
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