Kaito price had a strong performance after its airdrop this week. Unlike Pi Network that crashed, Kaito has soared by 60% as demand among crypto investors remained. The token jumped after the developers launched a staking feature. So, can the Kaito token price jump to $5 after the airdrop and mainnet launch?
Kaito Price to Benefit From Staking Launch
Kaito AI, one of the top crypto AI coin, launched its airdrop on February 20 that has done better than most drops like Wormhole and Hamster Kombat. One reason for the surge is the launch of its staking feature that is giving users double digit returns.
According to its website, Kaito has a 53.6% APR, much higher than most cryptocurrencies like Ethereum and Avalanche. The return is also higher than the “risk-free” rate offered by American government bonds.
Kaito has become a popular cryptocurrency by developing an artificial intelligence solution that rewards users attention. It describes itself as the ultimate Web3 information platform that lets users earn tokens for doing simple stuff like sending posts on X. Some of the top yappers in its network are Vitalik Buterin, Changpeng Zhao, Brian Armstrong, and aixbt.
Tokenomics and Dilution Risks Remain
Kaito price faces some key challenges, especially on its tokenomics. According to its tokenization page, 25% of the tokens went to core contributors, while 32.2% were allocated to ecosystem and network growth.
Kaito Tokenomics
The other top receivers of these tokens were the foundation, early backers (VCs), liquidity incentives, and community and ecosystem claim. Some market experts believe that insiders got too much or about 35% of all the tokens. The total comes from the 25% of the tokens that went to core contributors and the 10% that moved to the foundation.
Kaito Unlocks
Another concern is that Kaito tokens will go through dilution since it has 241 million tokens in circulation against total supply of 1 billion. The most upcoming unlock will happen on August 20 when 21.84 million tokens worth $42 million will be unlocked.
Kaito Price Prediction: Getting to $5 Will be Hard
Judging by the most recent airdrops, there is a likelihood that the Kaito price may crash in the coming weeks. Some of the most blue-chip recent airdrops that have crashed are Wormhole, Grass, EigenLayer, and Hamster Kombat.
Kaito’s airdrop was on Thursday, meaning that a long-term technical analysis is hard to do. The ten-minute chart shows that the Kaito price has formed what looks like a slanted head and shoulders pattern.
Kaito has also formed a rising wedge pattern, a popular reversal sign. Therefore, a bearish breakdown, possibly to $0.8672 is highly likely.
Kaito Price Chart
A bullish breakout to $5 is unlikely in the short-term since Kaito price needs to jump by 177% from the current level. Such a move would be confirmed if the Kaito token rises above the head level of $2.1 and the psychological point at $2.5.
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