Starknet’s STRK token drops as Nethermind and airdrop hunters dump millions

Starknet Token Price Plummets as Ethereum Infrastructure Firm and Airdrop Farmers Dump Millions

The value of the Ethereum layer-2 network’s Starknet token has plummeted by over 50% in just two days, as a result of massive sell-offs by Nethermind and airdrop recipients.

The token, known as STRK, has dropped from its peak of $4.41 on February 20th to under $1.90, according to data from CoinGecko. This steep decline can be attributed to the actions of Nethermind, a company that provides infrastructure for the Ethereum network, and users who received the token through an airdrop.

Despite initially reaching a high of $7.70 on Binance after its listing on the exchange, STRK’s price has now fallen below $1.90, representing a significant 75.4% decrease.

STRK Token Price Continues to Decline

In a post on February 22nd, blockchain analysts Lookonchain noted that the price of STRK has been steadily falling since its launch, raising concerns among investors and users.

Nethermind Sells Over $6.7 Million in STRK Tokens, Airdrop Hunters Consolidate Wallets

In recent news, it has been reported that Nethermind has sold 3.41 million STRK tokens, worth over $6.7 million. This has raised concerns about potential further selling, as the company still holds over $12 million worth of the token.

Additionally, Lookonchain has discovered another instance of airdrop hunters consolidating wallets, with 1.2 million STRK tokens, worth $2.4 million, being moved from 1,800 separate wallets to a single address.

This is not the first time such activity has been observed. Back in February, Lookonchain also found a similar case where 1.4 million airdropped STRK tokens, worth about $3 million, were sent from 1,400 wallets to a single address.

Airdrop Hunters and Allegations of Manipulation developer Banteg had previously raised concerns about airdrop hunters manipulating the system. It was alleged that over 700,000 wallets, out of the 1.3 million eligible for airdropped STRK tokens, were linked to GitHub accounts controlled by these hunters.

With the rise of web 3.0 and the increasing popularity of cryptocurrencies, it is important for investors to keep up with the latest developments and be cautious of potential manipulation in the market. Platforms like Binance have also become popular for trading cryptocurrencies, but it is important to stay informed and do thorough research before making any investment decisions.

As the world of crypto continues to evolve, it is crucial to stay updated and informed on the latest trends and developments, especially with the emergence of web 3.0 and its potential impact on the blockchain industry.

Starknet Airdrop Dampened by Ineligible Users and Delayed Rewards

The recent STRK airdrop faced challenges as Starknet users claimed they were not eligible for the distributions, despite meeting the criteria of holding at least 0.005 ETH at the time of a snapshot on Nov. 15, 2023. This dampened the overall impact of the airdrop.

Furthermore, some investors and contributors expressed dissatisfaction with the unlock schedule for STRK rewards, which would be distributed two months after launch. This amounts to 1.3 billion STRK, or 13% of the total supply.

The airdrop initially saw a high demand, with 45 million STRK tokens claimed within the first hour and a half. However, the total number of claimed tokens, currently at nearly 430 million, only accounts for 92% of the total available for distribution, worth over $790 million.

As the crypto market continues to fluctuate, it raises questions about the future of web 3.0 and blockchain technology. It is important for investors to keep up with the latest developments and news in the industry, including the launch of new cryptocurrencies like STRK and the airdrop opportunities they offer.

Despite the decline in STRK’s price, the total value locked in Starknet has surged by almost 30% in just 24 hours, as reported by DefiLlama. This indicates a significant growth in the world of decentralized finance.

Categorized in:

Tagged in: