Starknet (STRK) is the name of a new Layer-2 solution for Ethereum (ETH) that wants to compete with top solutions like Arbitrum (ARB) or Polygon (MATIC).
On February 20th (Tuesday) the native token STRK will come to crypto exchanges and at the same time Starknet will conduct a large airdrop. A good 7 percent of the total holdings of all 10 billion STRK will be distributed to investors who have already used Starknet or StarkEX in the past. But the community is not very happy with another central detail of the way Starknet becomes freely tradable.
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Starknet now also generously rewards the team and early investors with STRK, almost 40 percent of all tokens are reserved for this
That is in itself within the framework, the problem lies elsewhere. The launch of STRK was already planned for 2022. The STRK that goes to the team and investors were accordingly provided with time locks to prevent a sell-off immediately after a stock market debut. Due to the delays in the IPO, around 13 percent of all STRK held by the team and investors now only have April 15th as the date from which they can be sold.
Crypto influencer Sisyphus comments caustically on X. Starknet is a launch that will reach a multi-billion market capitalization – and distributes the tokens as if developers were paying themselves in a DeFi shitcoin, according to Sisyphus. Starknet often has to listen to such disappointed voices from the community, but wants to stick to its plans.
Typically, time locks of one year or longer apply to tokens that go to the team and investors at a launch in order not to put pressure on the price curve from the start. Starknet had intended this too, but now takes the genesis date as crucial, with the total of 10 billion STRK being generated in November 2022.
Conclusion: Starknet and STRK were criticized even before their stock market debut
Premarket, STRK trades around $1.70 on platforms like AEVO, giving Starknet a theoretical market cap of $17 billion. At the stock market debut, more than 20 percent of all STRKs will come onto the market and a lion’s share of them belong to the team and investors, who can take profits as early as mid-April.
With this knowledge in mind, it could be difficult to find new investors for Starknet. Starknet is already threatening headwinds with STRK’s tokenomics before the first day of trading – if they don’t address the critics and fine-tune the schedule.
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(Featured image by Shubham Dhage via Unsplash)
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