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$STRK tokens from Starknet faced a significant drop in value, losing 53% post launch. The tokens, initially priced around $5 each, experienced a drop preceding substantial token unlocks scheduled in the coming months.
Data reveals a 55% decrease in $STRK value in 24 hours, with trading volumes surpassing $1.2 bil. The liquidation of merely $3 mil. worth of $STRK futures indicates that the selling pressure was largely spot-driven. Approximately 728 million STRK were distributed to 1.3 million addresses based on predetermined factors, such as blockchain participation and community involvement.
Starknet, an Ethereum rollup platform, employs zero-knowledge proof technology to authenticate data sets without revealing the data itself. Over 100,000 wallets have claimed upward of 220 million STRK as of current.
Of the supply, 50.1% has been allocated to the Starknet Foundation for community airdrops, grants, and donations. 24.68% is set aside for early contributors and investors, while 32% is for developer StarkWareâs employees, consultants, and developer partners. These tokens will be unlocked monthly over 31 months, starting from April, potentially increasing selling pressure.
However, controversy surrounds the schedule for team and investor unlocks. Market observers discovered that Starknetâs actual token generation event occurred in November 2022, initially carrying a one-year vesting period later extended to April 2024, favouring insiders over new buyers.
Token vesting usually begins after going live on exchanges or closer to their trading date. In STRKâs case, issuance happened almost two years prior to a public announcement.
This means seed investors will have 13.1% of the supply unlocked in April 2024, with further unlocks each subsequent month. The initial unlock could be worth over $2.6 billion at current prices. Starknet has so far maintained its decision and has not altered the vesting date
