Babylon BABY Token Launch, Airdrop, Controversy: Everything You Need to Know

Source Beincrypto

Babylon launched its BABY token today after a brief delay from Binance. The toke quickly surged 40% to hit $0.15. driven by the listing hype, but airdrop sell-offs and profit-taking saw BABY crash shortly after.

Over the past week, Babylon’s airdrop has been subjected to much controversy. At the time of reporting, the token’s market cap stands just below $185 million.

BABY Airdrop and Token Launch

Token staking is a popular way to gain passive income in the space, and it’s growing noticeably. Last year, Babylon began offering Bitcoin staking and added on-chain yields soon after.

Today, Babylon launched its new BABY token, which began trading on Binance.

“Binance is excited to announce that Babylon (BABY) will be added to Binance Simple Earn, ‘Buy Crypto,’ Binance Convert, Binance Margin, and Binance Futures,” the exchange claimed in its announcement.

Binance, the world’s largest crypto exchange, was a natural candidate for Babylon’s BABY launch. It dominates the vast majority of crypto airdrops, and it offers very popular listings. The firm had to delay the official launch for a few hours, but it went off smoothly.

BABY was also listed by several other exchanges, including MEXC, which conducted an exclusive BTC Fixed Saving Event offering an Annual Percentage Rate (APR) of up to 99% in anticipation of the BABY token listing.

babylon baby price chartBabylon BABY Price Chart Since Launch. Source: CoinGecko

Babylon is a decentralized protocol that enables native, self-custodial Bitcoin staking. It allows holders to stake directly on the Bitcoin network to enhance security without relinquishing control of their assets.

Last week, the project airdropped 600 million tokens ahead of the token launch. The initial airdrop represented 6% of the total supply of BABY tokens, which were distributed to early adopters in several categories.

These include Phase 1 stakers, Pioneer Pass NFT holders, and contributing developers.

However, shortly after this airdrop, over $21 million worth of Bitcoin was unstaked from the Babylon protocol within 24 hours.

Increasing Concerns About Tokenomics

Also, its tokenomics indicate that nearly 66% of the total supply is controlled by insiders or the foundation. ​The substantial allocation raises concerns about potential centralization and the influence insiders may have on the project’s future.

Yet, there are community members refuting these concerns and backing the project. While insider allocation is high, access to that allocation is gated and structured to avoid market abuse.

Compared to recent examples where insiders had early staking rights and sold off rewards, such as EigenLayer, Babylon has deliberately built protections into its tokenomics to maintain fairness and avoid token dumping dynamics.

VCs, team, and advisors have no token unlocks in Year 1. This prevents early investors from front-running the market and dumping tokens during the protocol’s most fragile growth phase.

Most importantly, locked insider tokens are not allowed to be staked, which is rare.

Overall, the long-term performance of the token will reflect how sustainable this tokenomics is. Babylon’s approach to Bitcoin staking has gained significant attention, but the airdrop and subsequent unstaking activities highlight the dynamic nature of user engagement in response to incentive programs

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
placeholder
Gold edges higher after Trump’s bill boosts bond market uncertaintyGold (XAU/USD) price extends its weekly gains, trading near $3,330 at the time of writing on Friday, up nearly 1% on the day, on a new tailwind for the safe haven precious metal.
Author  FXStreet
17 hours ago
Gold (XAU/USD) price extends its weekly gains, trading near $3,330 at the time of writing on Friday, up nearly 1% on the day, on a new tailwind for the safe haven precious metal.
goTop
quote