25.06.2025 06:55

Newton Protocol's NEWT token experienced a dramatic 40% price plunge following its much-anticipated airdrop on Binance Alpha. This unexpected downturn has raised serious questions about the project's future, defying initial expectations of increased investor interest and value.

The airdrop's reception has been decidedly mixed. While some investors voiced disappointment, characterizing the token as a potential failure due to the lack of sustained interest and subsequent price crash, others have lauded Newton Protocol's innovative marketing approach. Leveraging the Kaito ecosystem, the project has employed a word-of-mouth referral strategy, aiming to cultivate organic growth through user networks. Kaito founder Yu Hu highlighted this grassroots campaign, emphasizing its focus on genuine user adoption within the Kaito ecosystem, attributing a third of verified Newton agents to these referrals. He further noted their intention to incorporate on-chain reputation systems to mitigate the impact of artificial inflation and reward authentic users.

Despite the initial setback, Newton Protocol is attempting to regain investor confidence by implementing measures to maintain market stability and fairness. A carefully structured vesting schedule for tokens held by the team and early investors prevents immediate sales, thus discouraging speculative trading and fostering a more controlled market environment. This strategy aims to counter the risk of flash crashes and pump-and-dump schemes.

The volatility surrounding NEWT's price is undeniably linked to the recent airdrop. However, the protocol's commitment to long-term stability, coupled with its novel marketing strategy, may ultimately determine whether the token can recover from this significant initial decline and attract sustained investor support. The long-term success of the project hinges on successfully addressing the concerns sparked by this precipitous price drop.