IRYS Token Rebounds After Early Setback From Counterfeit Contracts

The layer-1 blockchain Irys, which features the native token IRYS, made its debut on major cryptocurrency exchanges with an initial downturn tied to the emergence of counterfeit contracts. Despite the early volatility, the token has begun showing signs of recovery, suggesting that market confidence may gradually return.

Shortly after IRYS began trading on KuCoin, the Irys team alerted users to the appearance of fraudulent contracts that were imitating official IRYS tokens without any legitimate backing. This development triggered a swift drop in the token’s value as traders reacted to the increased risk of unsuspecting users purchasing fake assets. Although the price decline was noticeable, the team suggested that the potential reputational damage could have been far more severe if the fraudulent tokens had spread more widely.

As of the latest market data, IRYS was trading near the $0.03 level, representing a decline of roughly 10% from its initial listing price. Despite the setback, the project entered the market with strong momentum. Prior to its exchange debut, Irys had attracted positive attention from sector analysts and successfully raised about $19 million in venture capital.

Strong Team and Technical Vision Drive Long-Term Interest

Irys is led by founder Josh Benaron, who is also recognized as the creator of Bundlr, a second-layer solution on the Arweave blockchain designed for long-term data storage. The project emphasizes that several experienced blockchain specialists are contributing to the development of the network, strengthening its credibility in a competitive market.

The core objective of Irys is to merge data storage and smart contract functionality within a single blockchain network. This approach is made possible through the IrysVM virtual machine, which is compatible with the Ethereum Virtual Machine. The goal is to create an environment where structured data can be stored at scale while remaining inexpensive, accessible, and integrated directly with programmable logic.

According to the project’s design, this model could support high-volume data needs associated with artificial intelligence platforms, social media applications, content systems, and complex metadata. Users would be able to access this data quickly while building advanced on-chain applications without relying on off-chain storage solutions.

Token Utility and Deflationary Mechanics Aim to Support Long-Term Value

IRYS serves as the network’s native asset and is used for storage payments, execution fees, staking, and securing the blockchain. The project has outlined a deflationary token strategy in which most of the tokens collected from storage operations and fees will be burned. This mechanism is intended to create long-term scarcity and potentially enhance the token’s value as network activity expands.

Currently, many blockchain ecosystems focus on specific verticals—such as decentralized finance or simple file storage—and rarely offer seamless integration between data-heavy systems and computational logic. Irys aims to bridge this gap by positioning itself as a network that can support advanced applications while keeping data on-chain and affordable.

If the project succeeds in demonstrating the practical benefits of combining storage and smart contract execution at scale, industry observers believe it could evolve into one of the fundamental infrastructures for the next generation of Web3 projects. The recent volatility surrounding its launch may represent only a temporary hurdle as the project continues building toward its broader vision.