Ethereum

Starkware, the Ethereum based software company, faced <a href="https://news.todayq.com/sec-faces-criticism-over-regulatory-overreach/" target="_blank" rel="noopener noreferrer nofollow">criticism</a> after announcing details about its STRK token airdrop. Concerns arose over the quick availability of massive STRK positions for network investors and contributors after the launch. What is the airdrop controversy about? 
The controversy stems from the fact that just two months after the launch on February 20, over 1.3 billion STRK tokens will become available for transfer and sale. This accounts for 13.1% of the total STRK token supply. It is valued at over $2.15 billion based on pre-market trading prices.
Typically, tokens allocated to a project’s team and investors are locked for a longer period, often a year or more. This is done to make sure the team stays dedicated to the project, keeps the token price steady, and avoids any legal problems.
Critics said Starkware’s action was mean and almost breaking the rules, as they could sell their tokens very quickly. But Eli Ben-Sasson, who helped start Starkware and is its boss, said they’re just doing things in their way.
He admitted they’re not following the usual way, but he thinks it shows how Starkware is special. He thinks they’ve already shown they can be trusted by people who use their stuff. In an exclusive interview with Decrypt, Starkware’s CEO talked about these worries. He supported the plan for the Starknet <a href="https://news.todayq.com/solana-based-phantom-wallet-activity-surges-by-220-is-airdrop-the-reason/" target="_blank" rel="noopener noreferrer nofollow">airdrop</a> and said why he thinks it won’t hurt the token’s group. Ben-Sasson addressing concerns 
He emphasized the team’s dedication to advancing Starknet, stating, “As far as the eye can see, the only thing on the radar of Starkware’s 150 employees—and its expanding team—will be advancing Starknet.”
Addressing concerns about potential token dumping, Ben-Sasson argued that prolonging the token lock period would not necessarily prevent such scenarios. He believes that rewarding contributors promptly is important and trusts in the team’s long-term commitment. “I left a very lucrative position as a professor in academia to do this, and I’m not going back,” Ben-Sasson affirmed, highlighting his personal dedication to Starkware.
Despite criticisms, Ben-Sasson is confident that the shortened lock period for STRK tokens is justified and won’t be exploited by the team. “It really wouldn’t be the right thing to unnecessarily delay them,” he stated, emphasizing Starkware’s commitment to advancing Starknet.
Today, the global market cap stands at $1.94 trillion, showing a 3.61% rise compared to the previous day. Over the last 24 hours, the total trading volume in the crypto market reached $97.96 billion, marking a significant increase of 32.54%. Within the decentralized finance (<a href="https://news.todayq.com/enhancing-defi-equalizer-introduces-new-meta-aggregator-and-airdrop-explorer-services/" target="_blank" rel="noopener noreferrer nofollow">DeFi</a>) sector, the volume sits at $7.62 billion, accounting for 7.78% of the total market activity.&nbsp;
Get Crypto Trading Signals from Real Crypto Analysts. Join our Waiting List at todayq.com

Starkware Airdrop fallout, CEO replies

Todayq News

Other articles published on Feb 15, 2024

Valentine’s Day: Be Careful of Crypto Romance Scams

Bitcoin's Surge to $52K Faces Threats From Two Major Sell-Off Events

DeFi Sector Surges with Record High Total Value Locked

New Solana-Based Meme Token To Buy and Hold – Could SMOG Be The Next BONK?

Ethereum (ETH) Price Prediction for February 15

QCP Capital sets new deadline for BTC’s all-time-high

Join our free newsletter for daily crypto updates!