Starknet's Market Cap Surpasses $20B Amid Airdrop Controversy and High Demand
Summary:
Despite controversies, Ethereum layer-2 solution Starknet's fully diluted market cap has crossed $20 billion due to high demand for its airdrop. Approximately 700 million STRK tokens were allocated as rewards, with claims currently over 220 million. Simultaneously, Yearn Finance developer Banteg raised concerns about alleged inclusion of airdrop squatters in the eligibility list. Out of the 1.3 million eligible wallet addresses, an estimated 701,544 are suspected to be linked with duplicated or renamed GitHub accounts, potentially controlled by airdrop squatters.
Despite controversies, Starknet, an Ethereum layer-2 solution, saw its fully diluted market cap surpass $20 billion due to the high demand for its highly-awaited airdrop. On February 20, the Starknet development team designated around 700 million of the 10 billion total STRK tokens as rewards for solo Ethereum stakers and liquidity providers, Starknet developers and users, as well as projects and developers beyond Web3. Within the first hour and a half, 45 million STRK tokens were claimed, which currently stands above 220 million. There is a deadline of June 20, 2024, for the claim of remaining tokens. Albeit the price of STRK tokens has declined to $2 from its starting peak of $7 on the Binance cryptocurrency exchange, the protocol has maintained high investor interest. It currently boasts a total value locked of $57 million.
On the same day, stark allegations were made by Yearn Finance developer Banteg, who claimed that Starknet developers disregarded warnings and included airdrop squatters in their eligibility list. Banteg posted that it appeared only squatter data was taken into account, but not the renames. However, assurance was secured from Starknet developers that renamed developers will not be ignored, with more information likely to emerge soon.
Banteg previously issued a warning that approximately 701,544 of the 1.3 million wallet addresses eligible for the STRK airdrop were suspected to be linked with duplicated or renamed GitHub accounts managed by airdrop squatters. These airdrop hunters plan to profit from farming tokens from airdrops in the hope they escalate in value. They often employ scripts to merge numerous different addresses down to a few. Last year in March, it came to light that airdrop hunters managed to consolidate $3.3 million in tokens from 1,496 wallets down to just two wallets they controlled, all from the Arbitrum (ARB) airdrop.
Published At
2/21/2024 12:19:32 AM
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