Zama token drops 19% after debut despite unicorn status

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Yaroslav Dmytrenko

03.02.2026

Zama token drops 19% after debut despite unicorn status — ZAMA slides below auction price as exchange supply surges

The widely publicized confidential smart contracts project Zama, which achieved unicorn status even before its token listing, debuted on crypto exchanges with a 19% decline, as the number of tokens in circulation exceeded initial market demand.

On February 2, spot trading of ZAMA tokens was launched simultaneously on Binance, KuCoin, OKX, BitMart, and several other exchanges. This triggered a sharp increase in available supply, while the number of sellers outweighed that of early buyers.

A week earlier, the crypto project raised $118.5 million through a public auction, selling tokens at $0.050. However, during trading, ZAMA failed to reach this level, prompting some participants to sell below the auction price in an effort to limit losses. At the time of writing, the token was trading at $0.036, around 19% below the initial price.

At the same time, CoinMarketCap data shows that some traders managed to profit by buying ZAMA near the local low of $0.032 and reselling it around $0.036.

Zama gained recognition for developing tools based on fully homomorphic encryption (FHE) technology, which allows data to be processed without revealing its underlying content.

Technology demand outweighs token demand

Amid growing interest in privacy-focused tokens and transactions, Zama raised $150 million across two funding rounds from investors including Multicoin Capital, Protocol Labs, Blockchange Ventures, Pantera Capital, as well as Solana co-founder Anatoly Yakovenko, Juan Benet (Filecoin/IPFS), and Gavin Wood (Ethereum/Polkadot).

In addition, the project conducted a Dutch auction and token sale, both of which demonstrated strong market interest in blockchain privacy solutions.

Zama’s founders, Rand Hindi and Pascal Paillier, had already established strong reputations in the technology ecosystem prior to this project. Hindi is the creator of Snips, an AI platform for voice assistants, while Paillier is the inventor of the Paillier cryptosystem and one of the world’s most respected cryptographers.

For this reason, it may be too early to draw final conclusions. In the near term, the project plans to roll out its technology more broadly, after which the token could potentially recover toward the break-even level for investors at $0.050.

As we wrote, Bybit launches ZAMA listing with 12 million token staking rewards

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