Starkware CEO counters criticism that the Starknet (STRK) token airdrop unlock is a ‘scam’

adminFebruary 16, 2024

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Starkware co-founder Eli Ben-Sasson has hit back at criticism that he is rushing to unlock the Starknet (STRK) token, which will be airdropped to investors next week.

Starkware plans to unlock more than 1.3 billion STRK tokens, representing more than 13% of the total supply, on April 15, just two months after the airdrop to investors and contributors planned for February 20.

This differs from standard industry practice where crypto tokens allocated to project teams and contributors are locked up for long periods of time, such as one year. These practices help ensure the team’s long-term commitment to the project and prevent volatility in new tokens.

The two-month period set by Starkware for its Starknet tokens is now raising concerns, with one cryptocurrency user from X calling it “scam” tokenomics.

Another user, Wazz, said on the social media platform: “If you don’t think this is borderline criminal, I don’t know what to say.”

Retail investors look at emerging blockchain technology. Buy some, plan to hold for a long time
After two months, mcap tripled. I don’t know why, but people who issued tokens for free are dumping them on you.
Sorry, but if you don’t think this is borderline criminal, I don’t know what to say. https://t.co/jVRtBdRKP1
— Wazz (@WazzCrypto) February 14, 2024

Starkware CEO fires critic

Nonetheless, Ben-Sasson told Decrypt in an interview that the deviation from industry practices for the STRK airdrop is a strength, not a weakness.

In an interview with Decrypt, Starkware co-founder Eli Ben-Sasson said that over 1.3 billion STRK tokens (worth over $2.15 billion) will be unlocked in April, but that this will not harm the community and the team’s flagship token. He said it would be. Focus is the drive…
— Wu Blockchain (@WuBlockchain) February 15, 2024

He added that Starkware is already trusted by users and does not require long token locks. He added that Starkware’s 150-employee base is committed to advancing the project.

He also dismissed the notion that long token unlocks prevent price volatility, arguing that prices may plummet after a year of locking.

The former professor at the Israel Institute of Technology in Haifa said his team does not risk exploiting the airdrop structure, and believes it should reward investors and contributors early.

Watch out for this other airdrop

Another airdrop that investors are watching closely is one that the SMOG team plans to be the largest in history. Solana-based meme coin has allocated 35% of its token supply for airdrops. Details of this airdrop will be shared soon.

Smog is up 25% in the last 24 hours, trading at $0.05243 as of 8 a.m. ET.