- 2Z token dives 44% after TGE as Jump Crypto sends tokens to Binance.
- Whales move millions in 2Z within 24 hours, sparking heavy sell pressure.
- DoubleZero gains SEC clarity but faces early bearish trading sentiment.
DoubleZero (2Z) price has experienced a notable pullback on its first day of trading. DoubleZero, which is focused on building a decentralized physical infrastructure network (DePIN), had its 2Z token price drop by over 44% in the first 24 hours after its token generation event (TGE) to trade at around $0.51 at press time.
Related: SEC Grants Rare No-Action Letter for DoubleZero, Declares 2Z Not a Security
Why Did 2Z Price Slide After Its Hyped Launch?
The mid-cap altcoin, with a fully diluted valuation of about $5.2 billion, has experienced heightened bearish pressure due to a mixed reasons including:
Supply Shock Impact
After its TGE, 2Z experienced a sharp uptick in its circulating supply to about 3.47 billion. The 5x surge in 2Z’s circulating supply largely influenced its 50% drop during the past 24 hours.
| Entity | Percentage Allocated | Locking Scheduel |
| DoubleZero Foundation and Ecosystem | 29% | Unlocked |
| Jump Crypto | 28% | 5% unlocked. The remainder is subject to standard lockup. |
| Malbec Labs | 14% | Subject to standard lockup |
| Team | 10% | Subject to standard lockup |
| Institutions | 12% | Subject to standard lockup |
| Contributors | 4% | Subject to standard lockup |
| Builders | 2% | Subject to standard lockup |
| Validator | 1% | 0.7% unlocked at launch. The remaining is unlocked after 1 year from their date of purchase (April/May 2026) |
Data source: DoubleZero
Meanwhile, around 6.53 billion of 2Z token’s total supply, amounting to around 65%, have been locked for programmatic unlocks jn future.
Potential Insider Selling Suspicions
According to on-chain data analysis from Arkham Intelligence, Jump Crypto received $42.8 million worth of 2Z on Thursday, October 2. In less than 24 hours, Jump Crypto has already deposited 20.9 million 2Z tokens to Binance and ByBit.
As such, speculation of Jump Crypto dumping 2Z tokens has increased fear of potential price selloff.
Sell-the-News Impact
After a hyped launch, 2Z price has been subjected to a sell-the-news narrative. According to market data analysis from CoinGlass, DoubleZero’s 2Z has recorded significant attention from short leveraged traders, potentially capitalizing on its bearish outlook.
Related: KuCoin Lists DoubleZero (2Z), A High-Performance Global Network for Validators
On major crypto exchanges, led by Binance and OKX, short traders have outweighed long traders. As such, 2Z token recorded a total liquidation of $12 million from leveraged traders.
DoubleZero Fundamentals Still Build Under the Surface
Despite the rocky start, DoubleZero is working to project long-term strength. The project confirmed it received a rare no-action letter from the U.S. SEC, classifying 2Z as not a security; a regulatory green light few tokens enjoy.
DoubleZero announced on Thursday that its stake pops increased from 3 million Solana to 13 million SOL to support its validators.
On Thursday, the DoubleZero Foundation announced the launch of live mainnet-beta after a successful testnet. Moreover, DoubleZero’s testnet captured nearly 16% of Solana’s mainnet validators with direct internet access in nine cities.
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Source: https://coinedition.com/2z-price-crashes-44-after-tge-as-jump-crypto-dumps/