STRK’s Rocky Road: Starknet’s currency plummets after airdrop
Key Takeaways
- Despite an initial surge in interest, Starknet’s STRK token experienced a significant price drop from its initial high of $7.41 to $1.87 after launch due to selling by airdrop hunters and Nethermind.
- Concerns were raised about the airdrop’s eligibility criteria before it was launched, with Yearn Finance’s Banteg noting that many eligible wallets may be linked to exploitative activities.
- Despite controversies and price drops, Starknet’s protocol has maintained a solid valuation, with a total valuation reaching $76.95 million and a fully diluted market cap exceeding $20 billion.
recently released STRK Token on Starknet Within the Ethereum Layer-2 ecosystem It has suffered a significant decline in value. Immediately after introduction.
Despite the initial surge of interest, High opening price of $7.41 The price per STRK token on Binance fell to $1.87. At the time of writing Because airdrop farmers and Nethermind sold millions of dollars worth of tokens.
Did you know?
Do you want to become smarter and richer with cryptocurrency?
Subscribe – We post new cryptocurrency explainer videos every week!
These tokens Designated for various stakeholders within the ecosystem, They range from Starknet users and developers to Ethereum enthusiasts and non-Web3 open source contributors.
The airdrop that started on February 20th includes 728 million STRK tokens distributed Out of a total of $10 billion. surprisingly, 45 million STRK tokens were claimed in the first hour and a half; assertive It eventually surpassed 220 million tokens.
Before airdrop, Yearn Finance Anonymous Senior Developer pantec warned It appears that 1,854 users renamed or deleted their profiles after taking a GitHub snapshot. To qualify for the upcoming Starknet airdrop.
According to Banteeg, A closer look revealed that fact. Of the changed accounts, 1,175 are linked to the same GitHub ID. Over 700,000 wallets eligible for airdrops are potentially linked to exploitative activities by airdrop hunters.
After the airdrop starts, Lookonchain reported an example of an airdrop hunter consolidating a significant amount of STRK tokens into a single address. It represents a strategic approach to selling airdropped tokens for a profit.
Look on chain too famous that Nethermind offloaded 3.41 million STRK tokens. The total value is over $6.7 million. The move raised concerns about continued price pressure, along with the possibility of continued selling, given Nethermind’s remaining holdings.
nevertheless, starknet The protocol has maintained significant value, with total value locked (TVL) increasing to $76.95 million.. Besides, its Its fully diluted market capitalization exceeds $20 billion.
Participants are still You can claim your tokens until June 20, 2024.
This was not the only discussion surrounding the airdrop. Starknet users were also disappointed to learn that those holding less than 0.005 Ether in their accounts as of November 15, 2023 will be disqualified.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis comparing the differences between Western capitalism in the United States and forms of collective capitalism in Japan from 1945 to 2020.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
Aaron has been quoted in several popular media outlets and is a published author himself. In his spare time, he enjoys researching market trends and looking for the next supernova.
