{"id":161984,"date":"2024-02-21T11:26:57","date_gmt":"2024-02-21T11:26:57","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=161984"},"modified":"2024-02-21T11:27:01","modified_gmt":"2024-02-21T11:27:01","slug":"after-criticism-starknet-announces-distribution-of-over-200m-tokens-but-strk-continues-in-freefall","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/after-criticism-starknet-announces-distribution-of-over-200m-tokens-but-strk-continues-in-freefall\/","title":{"rendered":"After Criticism, Starknet Announces Distribution of Over 200M Tokens, But STRK Continues in Freefall"},"content":{"rendered":"<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">TL;DR\u00a0<\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><strong><span data-preserver-spaces=\"true\">Starknet,<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0a Layer 2 scaling solution for Ethereum,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">distributed over 728 million STRK<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0tokens to around 1.3 million wallets, leading to a 53% decrease in the token\u2019s value within 24 hours due to immediate selling.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">The token distribution has faced criticism<\/span><\/strong><span data-preserver-spaces=\"true\">, with some arguing that the token generation event and vesting period may favor insiders over the broader community.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">In response to the criticism,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Starknet is implementing changes and planning for the future<\/span><\/strong><span data-preserver-spaces=\"true\"><span data-preserver-spaces=\"true\">, which could play a crucial role in the token\u2019s recovery.<\/span><\/span><br \/>\n<hr \/>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong>Starknet,<\/strong> the Layer 2 scaling solution focused on improving the performance of decentralized applications on <a href=\"https:\/\/crypto-economy.com\/what-is-ethereum\/\" target=\"_blank\" rel=\"noopener\">Ethereum<\/a>, <strong>has recently faced criticism and a significant drop in the value of its native token, STRK. <\/strong><\/span><span data-preserver-spaces=\"true\">On February 20, Starknet distributed over 728 million STRK tokens to around 1.3 million wallets.\u00a0<\/span><!--more--><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong>The distribution of tokens was carried out based on specific criteria<\/strong>, including involvement in the blockchain and its community. However, despite the extensive airdrop, the value of STRK has experienced a significant decline, with a 53% decrease since launch. <strong>Currently, the STRK token is <a href=\"https:\/\/coinmarketcap.com\/currencies\/starknet-token\/\" target=\"_blank\" rel=\"noopener\">trading<\/a> at $1.91.<\/strong><\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">The intense selling pressure indicates that the recipients likely sold their tokens immediately. As of Tuesday, more than 100,000 wallets have claimed over 220 million STRK. This swift sell-off has resulted in trading volumes exceeding $1.2 billion.<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Over 220 million STRK claimed!<\/p>\n<p>Source: <a href=\"https:\/\/twitter.com\/_token_flow?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@_token_flow<\/a> <a href=\"https:\/\/t.co\/IoDOZQFJ8W\" target=\"_blank\">pic.twitter.com\/IoDOZQFJ8W<\/a><\/p>\n<p>&mdash; Starknet \ud83e\udd87\ud83d\udd0a (@Starknet) <a href=\"https:\/\/twitter.com\/Starknet\/status\/1760032120934924595?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">February 20, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong>The token distribution by Starknet has faced criticism.<\/strong> Some market analysts found that the actual token generation event for Starknet occurred in November 2022, with an initial one-year vesting period that was subsequently extended to April 2024. <strong>Critics contend that this arrangement may favor insiders over the broader community.<\/strong><\/span><\/p>\n<h2 style=\"text-align: left\"><span data-preserver-spaces=\"true\">Starknet Responds to Community Feedback and Announces Changes<\/span><\/h2>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-161986\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/STRK.jpg\" alt=\"After Criticism, Starknet Announces Distribution of Over 200M Tokens, But STRK Continues in Freefall\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/STRK.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/STRK-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/STRK-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong>In response to the criticism<\/strong> from the <a href=\"https:\/\/crypto-economy.com\/what-are-cryptocurrencies-and-which-are-the-best-to-invest-in\/\" target=\"_blank\" rel=\"noopener\">cryptocurrency<\/a> community, <strong>Starknet is implementing changes.<\/strong> The criticism primarily revolved around Starknet\u2019s eligibility requirements, the unlocking of tokens by the team, and the derogatory term \u201ce-beggars\u201d used to refer to their users.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Starknet acknowledged on a certain date that they had received feedback suggesting that some of their dedicated community members and network users had been excluded due to specific eligibility criteria.<strong> In light of this, the team has announced that they are researching to formulate a significant response.<\/strong><\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">Despite the criticism and the drop in STRK\u2019s value, Starknet remains a significant player in the blockchain space. Its technology enables applications to expand using zero-knowledge proof technology, which verifies the authenticity of a data set without disclosing the data itself.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\"><strong>The future of STRK remains uncertain.<\/strong> With the tokens being unlocked every month for 31 months, starting from April, there could be additional selling pressure. However, Starknet\u2019s response to the criticism and its plans for the future could play a crucial role in the token\u2019s recovery.<\/span><\/p>\n<p style=\"text-align: justify\"><span data-preserver-spaces=\"true\">As the crypto market continues to evolve, the events surrounding Starknet\u2019s STRK token serve as a reminder of the volatility and unpredictability inherent in the space. It also underscores the importance of transparency and community trust in the success of a cryptocurrency.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR\u00a0 Starknet,\u00a0a Layer 2 scaling solution for Ethereum,\u00a0distributed over 728 million STRK\u00a0tokens to around 1.3 million wallets, leading to a 53% decrease in the token\u2019s value within 24 hours due to immediate selling. The token distribution has faced criticism, with some arguing that the token generation event and vesting period may favor insiders over the &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"After Criticism, Starknet Announces Distribution of Over 200M Tokens, But STRK Continues in Freefall\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/after-criticism-starknet-announces-distribution-of-over-200m-tokens-but-strk-continues-in-freefall\/#more-161984\" aria-label=\"More on After Criticism, Starknet Announces Distribution of Over 200M Tokens, But STRK Continues in Freefall\">Read more<\/a><\/p>\n","protected":false},"author":32,"featured_media":161985,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,9883,84,74],"tags":[4583,4620,4679,5170,9901],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/161984"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=161984"}],"version-history":[{"count":2,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/161984\/revisions"}],"predecessor-version":[{"id":161989,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/161984\/revisions\/161989"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/161985"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=161984"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=161984"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=161984"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}