DED Memecoin Sparks Community Outrage as Airdrop Allocation Decreased

DED flyer

In just a few days, the new Polkadot-based memecoin’s Telegram community had over 20,000 airdrop hunters. The airdrop of the new Polkadot-based memecoin, DOT is $DED (DED), sparked substantial community anger after the original allotment was lowered.

Voters not willing to fund the project

Giotto De Filippi, one of the memecoin’s pseudonymous developers, revealed during a March 24 X Spaces that the initial airdrop allocation was decreased from 100% of the token supply to merely 5% of the supply to provide the memecoin a longer financial runway.

“Once you distribute 100%, you run out of ammunition… Because the voters were not willing to fund the project, it makes more sense to distribute less, and the rest of the tokens can be used to finance the project.”

DED began trending on X on March 23, after members of the Polkadot community created the memecoin in an attempt to capitalize on the memecoin fever and draw attention to the Polkadot ecosystem. Investors holding Polkadot DOT received 36 DED tokens for every 1 DOT owned.
Retail attitudes soured after the team cut its initial airdrop allocation. Orlando, a pseudonymous crypto investor, expressed his worries on X on March 23.

“Like everyone else, I’m disappointed with how the DED situation unfolded. The treasury spent money, and many people recently bought and held DOT, driven by the excitement around this experimental DED memecoin. I hope the team will find ways to compensate holders for these mistakes in the long term.”

Dune data shows that more than 85% of the DED airdrop supply has now been claimed, with over 1.3 million eligible addresses. Unlike other popular memecoins, DED’s airdropped supply is locked until future exchange listings, which reduces sell pressure.

Memecoin frenzy continues

The Polkadot-based token’s introduction coincides with rising retail interest in memecoins. Last week, meme cryptocurrency Book of Meme (BOME) surged more than 1,100% on the weekly chart, temporarily reaching the 130th largest token by market capitalization.

BOME is one of a slew of new memecoins that generated funds for unreleased coins using a contentious presale strategy. Pre-sales for these Solana-based memecoins garnered more than $100 million in SOL in the three days coming up to March 18.

Other blockchain networks are also attempting to profit from the hype. On March 21, the Avalanche Foundation launched a $1 million liquidity mining reward scheme for Avalanche-native memecoins and community-owned tokens.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.