The cryptocurrency market has today witnessed a dramatic surge as KAITO, the native token of the Kaito AI platform, skyrocketed over 100% following its token generation event (TGE) and subsequent listings on several major exchanges.
Trading volumes also soared, and the token’s market cap climbed to an impressive $458 million, reflecting a wave of enthusiasm among traders.
However, beneath the surface of this meteoric rise, on-chain data reveals a troubling trend of selloffs by early recipients, raising questions about the sustainability of KAITO’s bullish momentum.
The stellar KAITO debut sparks market frenzy
KAITO’s ascent began in earnest on February 20, when the token officially launched alongside its token generation event, introducing a total supply of 1 billion tokens.
The excitement intensified as prominent centralized exchanges including Binance, Coinbase, Kraken, OKX, Gate.io, Bybit, MEXC, BitGet, and Bitvavo announced listings, providing immediate liquidity and visibility.
By the early hours of February 21, KAITO reached an intraday high of $2.0397 on Uniswap, fueled by a staggering $2.1 billion in trading volume over the past 24 hours, according to CoinGecko data.
On Binance, the token posted an astonishing 1,521% gain, settling at 1.62 USDT, while Kraken and Bybit saw increases of 43% and 30.6%, trading at $1.41 and $1.57, respectively.
The rally caught many by surprise, contrasting with highly anticipated airdrops like Berachain and Pi Network, which had years of buildup.
Notably, KAITO’s rapid rise possibly underscores the market’s appetite for fresh projects tied to innovative concepts, particularly those leveraging artificial intelligence in the web3 space.
Social sentiment has played a role too, with Santiment reporting strong buzz across platforms like Telegram and X, alongside trending Google searches — a classic sign of retail interest flocking to the token.
At the heart of this whirlwind is Kaito AI, a platform harnessing artificial intelligence to redefine how information and attention are valued in web3.
The project gained traction with the December 2024 launch of Yaps, a permissionless protocol that transforms attention into a tradable asset, already finding use in reward systems and SocialFi applications.
The KAITO token powers this ecosystem, facilitating the flow of attention within what the team calls the “InfoFi” model—a bold attempt to make information measurable and monetizable.
Beyond Yaps, Kaito offers tools like Kaito Pro, an AI-driven search engine for crypto intelligence, and Kaito Connect, a network designed to optimize attention and capital movement in the web3 landscape.
These innovations have drawn attention to the project, positioning it as a contender in the growing intersection of AI and blockchain.
If Kaito can deliver on its ambitious promises, particularly by tokenizing social media content, it could bolster community trust and support a price recovery.
Selloffs cast a shadow over KAITO price gains
Despite the exuberance, a closer look at on-chain activity paints a more cautious picture.
Data from BaseScan reveals that the top recipients of KAITO’s earlier airdrop have been quick to cash out.
According to Dune Analytics data, the top 12 claimers, who collectively received tokens worth approximately $3.3 million in the latest snapshot, have largely exited their positions.
Ten of these holders sold at least a portion of their stash, with eight offloading everything, signalling a focus on short-term profits rather than long-term confidence.
Earlier data from Dune Analytics showed a similar pattern, with 76.7% of all airdrop claimers selling off their holdings shortly after distribution, a figure that has since climbed to 79.6%.
This widespread profit-taking hints at underlying scepticism about KAITO’s tokenomics and airdrop mechanics, which have faced criticism from the community.
Only a small fraction of claimers, approximately 22%, have held steady, while a mere 1.3% have added to their positions, suggesting minimal interest in accumulation.
With less than 30% of the total supply claimed so far, the potential for additional tokens to flood the market looms large, threatening further downward pressure if sentiment doesn’t shift.
Persistent selling pressure could drag the token lower, with support at $0.89 in sight.
If this support is breached might see prices tumble below $0.8 or even $0.7, especially if unclaimed tokens enter circulation unchecked.
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