Starknet’s STRK token has seen unprecedented activity as millions of tokens were claimed on airdrop day, with its value hitting $7 on Binance.
The fully diluted value of the STRK token reached $50 billion, with its initial market cap reaching $3.64 billion.
Unprecedented Activity
Layer-2 scaling protocol Starknet began the distribution of its native STRK token on the 20th of February, as it airdropped millions of tokens to 1.3 million addresses in what is being dubbed the largest airdrop of the year. Real-time data tracking has shown that eligible users have secured over 45 million STRK tokens so far, barely a couple of hours after the allocation began. STRK also began trading on several popular exchanges.
The token’s pre-launch perpetual futures were trading at $1.80 on the decentralized futures platform Aveo. Following its listing, the STRK token traded over $7 on Binance and crossed $5 on KuCoin. However, following the initial hype, the excitement around the token came down a notch, as STRK experienced a considerable retracement of over 50%, dropping to below $2. Currently, STRK is trading at $1.90.
Airdrop Users Cashing In
Cashing in on the hype around the token, airdropped users sold large portions of their airdropped holdings across exchanges. The initial demands and liquidity were the reason the token was trading at up to $7 on exchanges such as Binance and KuCoin. Data sourced from LookOnChain showed that Flow Traders, a popular liquidity provider, had received 5 million STRK tokens in the airdrop. Out of this airdrop, they sold 653,000 tokens for $2.48 million.
Meanwhile, Nethermind, a research solution provider for Starknet, received 10.25 million STRK tokens valued at around $23 million during the airdrop. So far, Nethermind has sold 700,000 STRK tokens, according to data from Etherscan.
“It seems that #FlowTraders is selling $STRK! #FlowTraders received 5M $STRK and sold 653K $STRK($2.48M) at $3.79 on #DEX. Then #FlowTraders deposit 3.5M $STRK to #Binance and 100K $STRK to #Cryptocom, with 747K $STRK left.”
Selloffs Not Unexpected
STRK has an initial total supply of 10 billion tokens, meaning the fully diluted value of the STRK tokens stands at $35 billion. However, the actual market capitalization, which is the current circulating supply multiplied by the current price of the token, stands at $2.32 billion. 50.1% of the STRK tokens have been allocated to the Starknet Foundation for community airdrops, grants, and donations.
A further 24% will be distributed among early investors and contributors, and 32% will be allotted to StarkWare employees, consultants, and development partners. The tokens will be unlocked monthly for 31 months, starting April 2024.
The selloffs by Flow Traders, Nethermind, and other airdrop recipients are not something out of the ordinary. The airdrop has been one of the most highly anticipated airdrops in the recent past, and it is no surprise traders want to use the volatility in the market following the token’s launch.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.