The distribution of 700 million STRK tokens through an airdrop by the Starknet [STRK] Foundation was successfully completed on February 20th.
Within the initial five minutes, approximately 5 million tokens were claimed, as per the Starknet Foundation’s announcement.
Notably, during this period, STRK briefly surged to a trading price exceeding $3, marking an approximate 50% rise from the pre-launch futures market value.
This surge propelled its fully diluted valuation (FDV) to about $30 billion.
As per the team’s update on X (previously known as Twitter), more than 400 million STRK had been claimed at the time of the latest report.
However, the airdrop faced challenges and did not unfold as smoothly as expected.
Issues Arising from the Starknet Airdrop
According to a post from Lookonchain, an individual received over 1.4 million Starknet tokens, equivalent to approximately $3 million, distributed across 1,361 wallets.
Subsequently, all these funds were consolidated into a single wallet address.
In addition, another airdrop participant received 1.22 million STRK, valued at $2.4 million, through 1,800 wallets, totaling $5.4 million.
The activity from these wallets is recognized as a Sybil attack, a strategy involving the creation of multiple accounts to simulate numerous individuals simultaneously.
The aftermath of such Sybil attacks has repercussions on the asset’s price, as it grants the attacker the ability to manipulate the asset’s price.
STRK Encounters Sell-offs Amid Price Decline
Starknet has witnessed a notable surge in trading volume during the past 24 hours, as per CoinMarketCap’s report. At the time of this article, the volume had surged by over 6,000%, exceeding $1.8 billion.
However, data from Spot on Chain reveals substantial selling activity of STRK tokens.
An analysis of the data showed that Nethermind, a Lido node operator, received 10.25 million STRK and subsequently sold over 959,000, amounting to about $2.31 million.
At the time of reporting, they held 9.24 million STRK.
Additionally, Flow traders received 5 million STRK and sold 4.543 million across multiple exchanges, generating nearly $17 million at a selling price of over $3 per token.
At the time of reporting, the wallet held approximately 457,000 STRK.
A price analysis showed a decline of about 50% from its listing price at the time of writing.