Millions dumped by Nethermind and airdrop hunters cause drop in Starknet’s STRK token

The price of the Ethereum layer-2 network Starknet’s token, STRK, has experienced a significant drop of almost 60%. It is currently trading at less than $1.90, compared to its peak of $4.41 on February 20 when it was airdropped to certain users of the blockchain. The token reached a high of $7.70 on Binance after being listed on the exchange, but has since declined by 75.4% to below $1.90. Nethermind, an Ethereum infrastructure company, and airdrop farmers have sold off millions of dollars worth of the airdropped token, causing the price to plummet. Lookonchain, a blockchain analysis firm, reported that Nethermind sold 3.41 million STRK tokens worth over $6.7 million and warned that further selling may occur as the company still holds over $12 million worth of the token. Lookonchain also discovered instances of airdrop hunters consolidating wallets and moving large amounts of STRK tokens to a single address. Despite the controversies surrounding the airdrop, including eligibility criteria and the unlock schedule for rewarding investors and contributors, the STRK airdrop was largely successful, with nearly 430 million tokens claimed by eligible participants. Despite the price drop, the total value locked in Starknet is $73.5 million, representing a nearly 30% increase in just 24 hours.