The Starknet Foundation ignited the cryptocurrency market by distributing 700 million STRK tokens in a highly anticipated airdrop on February 20th. This event triggered a massive surge in withdrawal requests, with 5 million being recorded within mere minutes of the distribution. As a consequence, the price of STRK tokens experienced a dramatic spike, reaching $7 before settling at an approximate value of $3, still marking a significant increase from pre-airdrop trading prices.
Challenges and Manipulation Tactics Surface
Despite the initial enthusiasm, the airdrop faced operational hurdles as the system was overwhelmed with over 400 million STRK token requests. Lookonchain, a blockchain analytics firm, reported that an individual had managed to amass 1.4 million STRK through the use of 1,361 wallets. These tokens, valued at $3 million, were then funneled into a single address. Another participant exploited similar tactics, using 1,800 wallets to obtain 1.22 million STRK, translating to $2.4 million, an act known as a Sybil attack.
Market Response and Significant Sales
Market data from CoinMarketCap reflected a substantial decline in both the trading volume and price of Starknet tokens post-airdrop. The initial trading frenzy saw volumes spike by over 6,000%, cresting at $1.8 billion before halving. Spot on Chain reported major sales of the STRK token, including a sizeable sale by Nethermind, a Lido node operator, who divested 959,000 STRK for $2.31 million.
Despite these sales, Nethermind retained a significant stake of 9.24 million STRK. In similar fashion, Flow investors sold 4.543 million STRK, pocketing $17 million, yet retained 457,000 tokens. As of the latest update, STRK’s price was listed at $1.86, up by nearly 10%, and the market cap increased by a similar percentage, reaching $1.3 billion.