On June 17th, $SPK finally managed to get listed on Binance, such a major exchange, which should be a reason to celebrate, right?
As a result, the project team launched a massive 'free giveaway' (airdrop), throwing out 200 million SPK at once!
Now, those 'whales' holding a large amount of SPK saw the opportunity! They quickly cashed out and ran away.
Just the two major holders dumped 39 million SPK (worth 2.7 million USD) into the exchange, and with such an influx of goods in the market, the price crashed directly.
It dropped from 7.5 cents to 5.7 cents at the opening, falling over 24% in just one day. Other early investors saw this situation and hurried to sell as well, trying to preserve some profit, but instead, the price further plummeted.
The market is too small, like a 'little skiff' that can't withstand strong winds:
The entire circulation market cap of SPK is just over 70 million USD, which is considered a 'small cap coin' in the crypto world.
What do these small coins fear the most? They fear big funds coming in and out. With any significant trading, prices jump up and down.
What's more frightening is that exchanges can offer 75x leverage! It's like letting a group of people play 'bullfighting' on a small boat, betting on rises and falls at huge stakes—how can the price not 'spazz out'? A fluctuation of over 10% in a day is not surprising.
There's something even more ridiculous! On the same day on Uniswap, due to a misconfiguration, there was actually a trade where 1 SPK could be exchanged for 20,000 USD! When this happened, everyone was wondering: is the price of this coin really reliable?
What use is this coin? It seems to have no real utility...
SPK is set to release a total of 10 billion! Currently, there are 1.7 billion in circulation, and the bulk (6.5 billion) will be mined slowly over the next decade.
The most critical issue is, what can you do with SPK? Mainly just two things: vote and lock up assets.
What are you voting for? Mainly to decide how to continue 'giving away' this coin... There’s not much decision-making power regarding the protocol's development or profitability. As for locking up assets? There aren't many tangible benefits.
In short, everyone feels that holding it has no real value, it's just 'air', and lacking confidence naturally makes them reluctant to hold.
Competitors are too strong, and we seem a bit 'outdated':
The project behind SPK is called Spark Protocol, which focuses on DeFi lending.
This territory has long been occupied by giants! Aave is the absolute leader, holding more than half of the lending market.
SparkLend has only locked up 3.25 billion USD, which pales in comparison to Aave.
Now new players like Morpho and Euler have emerged in the market, offering more flexible and modular lending models, particularly attracting professional 'big money' investors.
In contrast, Spark is still using the old 'all-inclusive' model, appearing a bit out of touch, with users and money flowing to others.
'Fans' are too few, and the promotion is weak:
Community enthusiasm is cooling down. SPK's official Twitter only has 52,000 followers, while Aave has over a million and Morpho has 280,000—the gap is too large.
They wanted to expand into the Asia-Pacific market (APAC), but the promotion has been so ineffective that money keeps flowing out.
The 'big climate' is bad, and everyone is scared:
Recently, the entire crypto market has been declining (Q2 2025), with Bitcoin dropping from 65,000 to 48,000.
At such times, everyone's risk awareness becomes strong, thinking 'survival is more important', quickly swapping high-risk coins like SPK for more stable assets (like Bitcoin, Ethereum, or simply converting back to USD).
The technical foundation makes people feel a bit 'hollow':
The technology of Spark is directly 'copied' from Aave V3's work (a fork). Although it saves time, it raises doubts: can you really do it yourself? Is the core entirely reliant on someone else's code?
Although there is a reward of 5 million USD for finding system vulnerabilities (bug bounty), after all, this code has not truly undergone the test of large-scale hacker attacks, leaving users a bit uneasy and lacking trust.
The outside world is tense, and traditional finance is 'snatching business':
Global regulation of cryptocurrencies is getting stricter; recently, Turkey fined JPMorgan for similar issues, making everyone more cautious about new and small cryptocurrency projects.
At the same time, the Federal Reserve has set interest rates above 5%, making traditional banking options like saving or buying government bonds more profitable.
In contrast, Spark's strategy of earning some income through stablecoins has greatly diminished its attractiveness. Money has flowed back to traditional finance.
To summarize:
The SPK coin was crushed by large holders right after its listing, and coupled with its small market cap causing huge volatility, a price glitch further damaged trust. The key issue is that holding this coin has no real use (no value support), the lending business can't compete with giants or newcomers, the community is small, and promotion is ineffective. It just happened to coincide with a massive decline in the entire crypto market, where everyone is afraid of risks, regulations have tightened, and higher traditional interest rates have drained money away, while the technical foundation still leaves people a bit uneasy... With so many 'bombs' going off at once, how can the price not drop? If these issues are not resolved, it’s likely to continue declining.
