Lighter experienced a massive outflow of $250 million immediately after token distribution

After the token generation event (TGE) of the decentralized perpetual exchange Lighter, there was a significant outflow of capital from the platform. On-chain analysis reveals that approximately $750 million worth of LIT was airdropped, and about $250 million was withdrawn the next day.

Withdrawal Scale and Market Impact

According to data detected by Bubblemaps, approximately $210 million was moved on the Ethereum blockchain, and about $52.2 million on Arbitrum. This accounts for roughly 20% of Lighter’s total value locked (TVL) of $1.4 billion.

Nicolas Vaiman, CEO of Bubblemaps, commented on this large-scale outflow phenomenon, stating, “Adjusting hedge positions and shifting capital into farming opportunities are common movements after TGE.” Based on past token launch cases, similar patterns have been observed in Hyperliquid and Aster, and it is highly likely that similar phenomena will occur in future PERP DEX and Paradex airdrops.

Rapid Decline in Token Price

Currently, the trading price of LIT hovers around $1.84, having dropped approximately 45% from $3.37 just a few days before the airdrop. While trading volume was stable at around $8 billion to $15 billion in November, it has recently plummeted to about $2 billion.

Profit Taking by Early Participants

Natalie Newson, Senior Blockchain Security Researcher at CertiK, stated, “Large withdrawals after TGE are mainly due to profit-taking by airdrop farmers and early participants.” Due to limited information about the distribution mechanism of the new tokens, an environment is easily created where some insiders can gain excessive returns immediately after launch.

This phenomenon is not limited to Lighter but is a typical pattern observed in many DeFi protocols. During the initial stages of token distribution, the composition of market participants tends to change significantly, and price volatility increases.

According to CertiK’s analysis, future token launches could mitigate such sharp price fluctuations through increased transparency and the introduction of phased liquidity release mechanisms.