Is $STRK the largest scam of the year?
Well, we are just in the 2nd month of the year and we might see even worse, unfortunately.
So, why does STRK qualify as a SCAM? The facts! Here they are:
1. Just before the listing, Starknet started its distribution of 728 million STRK tokens to about 1.3 million wallets. This move is already being dubbed the largest airdrop of the year. The average per wallet is 560 tokens which means that in reality, some people received a huge number of free tokens.
2. The circulating supply is... 728 million tokens, meaning that all those freely acquired tokens are in (huge) profit, ready for sale as soon as possible.
3. The listing price is the real problem. Why a token distributed for free is listed at an opening price of around $3? The fully diluted market cap was in a misleading way set to $30B when the real price of free tokens is, actually, $0 until the market decides for their real value. A listing price below $1 or less should be the norm for new tokens. Even BTC didn't start at $1.
4. Starknet will be unlocking STRK coins every month for the next 31 months starting from April. There are 10 billion of them in total. Will the market cap be $30 billion by then? Even if that's the case, what's the point of paying today for a hypothetical achievement in 2.5 years?
Conclusion: It was obvious the price was going to dump hard because the opening price was way too inflated. A listing price below $1 or less should be the norm for new tokens. Even BTC didn't start at $1.
Now the circulating supply is 728 million. Does STRK deserve that valuation and that much money into that project? We will know shortly but for now, buying at the opening price or more was not the best idea.
Disclaimer: This is no financial advice but a summary and comment based on the research I did.
