Many users are selling and swapping their airdropped STRK tokens, as Starknet peaked at $3.42 within an hour of its debut.
Airdropped users cashed in on Starknet’s hype, selling large portions of holdings across several exchanges. The token traded for up to $7 across exchanges like Binance and KuCoin due to initial demands and liquidity.
Data from Lookonchain shows that Flow Traders, a popular liquidity provider, received five million STRK tokens in the airdrop, selling 653,000 for $2.48 million. Nethermind, a research solution provider for Starknet, received 10.25 million STRK tokens, valued at around $23 million. So far, Nethermind has sold over 700,000 STRK, according to Etherscan data.
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.https://t.co/7uUaAB8YSF pic.twitter.com/Vj9fgV7i71
— Lookonchain (@lookonchain) February 20, 2024
Sell-offs are not unexpected, as the airdrop has been anticipated for months and marks one of the largest token distributions in recent years. It is usual for traders to utilize the early volatile market after a token’s initial launch.
Early sell-offs have impacted STRK’s volatility, as the token has dropped nearly 44% from its peak price earlier today. Strong optimism surrounding Starknet’s performance still remains, as today’s airdrop was just the first phase of a wider 700 million token distribution plan. The layer-2 rollup network also has strong support from the developer community, as it aims to solve Ethereum’s scalability issue and reduce costs.