The Solana (SOL) based crypto wallet Phantom suffered a technical outage on October 28 due to the GRASS token airdrop. However, the wallet is back in action after hours of the outage.
The backend of the Phantom wallet broke down during the airdrop and couldn't be restored for 2 hours 44 mins. This resulted in the crypto wallet users getting inaccurate balances in their accounts.
Phantom revealed that action has been taken with a tweet saying that their services “should be working well for most users now” and their “team will continue to monitor the situation”.
However, crypto traders correlated the Phantom outage to the GRASS token airdrop as it caused an increase in user activity. The airdrop started 6 minutes before the technical outage on the crypto wallet.
Grass, a decentralized platform, allows users to make money from unused internet bandwidth by contributing it to a network supporting AI model development. Node operators get Grass points as activity-based rewards which are converted to redeem GRASS tokens. In the first GRASS airdrop 10% of the total supply of the digital asset, some 100 million tokens were allocated to users.
Crypto users had to connect their Solana wallets with the Grass platform to verify their locations to be eligible for the airdrop in order to claim the GRASS tokens. However, the Phantom wallet outage resulted in many users being unable to claim the tokens.
In 2024, Phantom faced 12 backend issues, most of which happened on February 1 resulting in 1.5 hours of downtime.
Meanwhile, GRASS is depicting a volatile nature from day one as it is down by 10.2% as of October 29 beginning of the day. The digital asset which has a fully diluted valuation of $813 million is listed on 3 crypto exchanges - Bitget, Bybit and KuCoin.
Crypto analysts are still upbeat about GRASS price prediction as they ask traders to reassess the token's value as most early-stage tokens experience price corrections and surges. Traders should be cautious of price fluctuations as GRASS has a limited trading history and a token value of $0.8.
As of October 29 evening, Grass is trading at $1.07, up 66.73% in the last 24 hours while its trading volume has increased by 721.82% to reach $291.62 million. However, the token's market cap remains unchanged at $264.19 million.