TREE, the native token of DeFi protocol Treehouse, crashed 40% shortly after its TGE event and listing on multiple exchanges, including Binance, Coinbase, and Bitget.
Summary
- TREE crypto is down over 40% less than a day after its token generation event.
- Treehouse has secure listings on several tier-1 exchanges at launch.
- Major names like yZi Labs and Wintermute have backed the project.
Binance was the first platform to list the TREE token on July 29, which followed shortly after its listing on its early-access listing portal, Binance Alpha. It was quickly followed by spot listings on other top-tier exchanges, including Coinbase, KuCoin, Bybit, Bitget, Gate.io, and MEXC.
The TGE established a total capped supply of 1 billion TREE tokens, with over 156 million tokens, around 15.6% of the supply, entering circulation at launch.
As part of the rollout, 12.5 million TREE tokens were distributed to Binance users through the Binance HODLer Airdrop program, while another 12.5 million were reserved for future campaigns. A broader 10% of the supply, or 100 million TREE tokens, was allocated for community airdrops, including Treehouse’s Gaia and GoNuts incentive programs.
According to its tokenomics, TREE distribution seems to be structured to promote long-term sustainability and ecosystem growth. Key allocations include 20% for Community Rewards, 17.5% for Strategic Investors, and 12.5% each for the Core Team and DAO Treasury.
Additional distributions include 10% for the Ecosystem Fund, 5% for Core Contributors, 5% for Exchange Partnerships, 4.5% for future airdrops, and 1.5% for liquidity provision.
Most of these allocations are subject to a 48-month vesting schedule with structured cliff periods designed to discourage short-term speculation and align incentives across stakeholders.
However, all airdropped tokens were fully unlocked at TGE, allowing recipients immediate access.
According to data from CoinGecko, Treehouse (TREE) launched at an initial price of $1 and surged 36% within the first five minutes of trading. However, the altcoin soon faced selling pressure and dropped 41% over the past 24 hours, trading at $0.58 at press time.
The crash could likely be due to early selling pressure from airdrop recipients and market participants capitalizing on the token’s initial surge.
Such occurrences are not uncommon in the crypto space. As reported by crypto.news earlier in July, a similar drop occurred with RCADE, the native token of RCADE Network, which fell over 30% just a day after its listings on multiple exchanges, including Binance and Bitget.
What is Treehouse?
Treehouse is a decentralized fixed-income infrastructure protocol built on Ethereum, designed to bring scalable real-world interest rate mechanisms and yield-bearing products into DeFi.
Its architecture centers around two key components, tAssets, which generate real-time on-chain yield, and the Decentralized Offered Rate (DOR), which provides benchmark interest rates for DeFi protocols.
The TREE token plays a central role in maintaining and governing the network. Holders can stake TREE to secure the protocol, participate in DOR governance, and earn validator rewards. The token also covers transaction fees and access to protocol services.
Treehouse has been backed by several prominent investors, including Binance Labs, now known as YZi Labs, Lightspeed Venture Partners, Jump Capital, Mirana Ventures, Wintermute, GSR, and MassMutual Ventures.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
