Around the LOOP
[Terra Bounty 93] What did those who claimed the LOOP airdrop do with the funds? Use data.
Similarly, we see an immediate uptick in LOOP-UST swaps following the airdrop and a slow trickle of volume as the airdrop claims slow. The pink line below is LOOP->UST swaps, aka sells, while the light blue signifies buys.
Note: I am presenting swap volume in UST while the above token claims are in count of LOOP tokens.
A significant amount of the LOOP airdrop was claimed by the end of the weekend, hitting 4mm cumulative tokens by 2pm on October 8th. Per LOOP, the total genesis airdrop was 6.5mm tokens.
This analysis will focus on the initial actions by airdrop claimants. I think this chart should explain why.
So, what did that do to the price? Well, it immediately entered some price discovery, bouncing violently between $0.40 and $1.40 until it normalized around $1.00 as trading volume and airdrop claims calmed down. As of this writing, LOOP trades around $0.62 and volume has tapered off significantly.
So, those are some nice charts and all, but I want to know a bit more about airdrop claimant behavior. Below is a chart of cumulative buy vs sell volume - in Token Quantity. (Why not in UST anymore? Because the price changes and right now I just want to see LOOP flowing thru swap DEXes).
Immediately following the airdrop, there is decent buy pressure! On the first day of the airdrop, there buys > sells by roughly 70k tokens. However, as the price remains higher than expected, around a dollar, the sellers come in and flip the volume fairly significantly.
HOWEVER
Buying and selling is not all that the users could do. LOOP operates a DEX, it wants users to provide liquidity. So, did they?
In short, yes. It's no surprise to see a similar volume pattern across claims, trading, and LP deposits. LOOP tokens were suddenly made available and users had a couple places to bring them. Now, there are also liquidity pools available on terraswap or users are simply HODLing their LOOP tokens (staking is not yet available on the LOOP DEX and that is a common destination for protocol tokens).
I did check the amount of LOOP added to the LOOP-LOOPR pool and it is incredibly minimal. I am including a link to the chart of LOOP deposits, but that's about all.
Investigation into LOOP's fairdrop token distribution. Follow on twitter @forgash_ for future analysis.
link to article on loop