Jump Crypto's Token Dump Sparks 2Z's 17% Plunge

Source: [1] Latest DoubleZero (2Z) Price Analysis - CoinMarketCap (https://coinmarketcap.com/cmc-ai/doublezero/price-analysis/) [2] DoubleZero (2Z) Deep Dive October 2025: Price, News, and Long ... (https://www.gate.com/crypto-wiki/article/doublezero-2z-deep-dive-october-2025-price-news-and-long-term-value-assessment) [3] DoubleZero (2Z) Dips Below $0.40 Amid Heavy Whale Selling (https://www.banklesstimes.com/articles/2025/10/08/doublezero-2z-dips-below-0-40-amid-heavy-whale-selling/) [4] 2Z Token Tanks Despite SEC Green Light, Sparking Backlash Over ... (https://zoombangla.com/blog/2025/10/03/2z-token-tanks-despite-sec-green-light-sparking-backlash-over-tokenomics/) [5] 2Z Price Crashes 44% After TGE as Jump Crypto Dumps (https://coinedition.com/2z-price-crashes-44-after-tge-as-jump-crypto-dumps/)

DoubleZero (2Z) experienced a sharp 16.93% decline in 24 hours, underperforming the broader cryptocurrency market, which saw a 2.15% rally. The token's price fell to $0.3914, with a market capitalization of $1.35 billion, as liquidity rotations and token unlocks exacerbated selling pressure. On-chain data revealed that Jump Crypto, a major holder controlling 21.39% of the supply, deposited $20.9 million worth of 2Z to exchanges like Binance and Bybit, signaling potential offloading activity.

The collapse followed a post-mainnet launch rally, with 2Z's trading volume surging 12% to $362 million in a single day. Analysts attributed the selloff to profit-taking by early investors, including venture capital firms, and structural concerns over the token's inflationary model. Only 3.5-4% of 2Z's 10 billion genesis supply is currently circulating, with vesting schedules for team and investor tokens locked until 2026-2027. Additionally, 1.28 billion tokens earmarked for airdrops created further sell pressure.

The U.S. Securities and Exchange Commission's no-action letter, which classified 2Z as a utility token rather than a security, initially boosted optimism. However, this regulatory clarity failed to offset market skepticism. On-chain analysis highlighted that 35% of the token supply was unlocked at launch, compounding liquidity risks. Arkham Intelligence noted that Jump Crypto's rapid transfer of tokens to exchanges coincided with the price drop, raising concerns about insider selling.

Market participants also pointed to macroeconomic factors. While Bitcoin and Ethereum rose on expectations of Federal Reserve rate cuts, 2Z's low float-its $1.92 billion market cap against $770 million daily trading volume-amplified volatility. The token's technical indicators worsened, with the RSI dipping to 30-32 (oversold territory) and MACD histograms remaining below zero, indicating sustained bearish momentum.

Despite the short-term slump, DoubleZero's infrastructure expansion continued. A new validator integration with Solana's Forward Industries, backed by Galaxy Digital and Jump Crypto's Firedancer client, signaled long-term confidence in the project's decentralized physical infrastructure model. However, critics emphasized that tokenomics transparency and equitable distribution remain critical for rebuilding trust.

Investors are now monitoring key support levels. A breakdown below $0.35 could expose 2Z to retesting its all-time low of $0.23, while a recovery above $0.45 might invalidate near-term bearish bias. The token's ability to balance inflationary pressures with staking demand and burn rates will be pivotal in determining its trajectory.