Starkware CEO Hits Back At Criticism That Starknet (STRK) Token Airdrop Unlock Is ''Scammy''

Starkware CEO Hits Back At Criticism That Starknet (STRK) Token Airdrop Unlock Is ”Scammy”

Updated: 15 February 2024

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Starkware co-founder Eli Ben-Sasson hit back against criticism that it’s rushing the unlocking of Starknet (STRK) tokens to be airdropped to investors next week.

Starkware plans to unlock more than 1.3 billion STRK tokens, equivalent to more than 13% of the total supply, on April 15, barely two months after the airdrop to investors and contributors that’s planned for Feb. 20.

That’s a deviation from standard industry practice where crypto tokens allocated to the project’s team and contributors are locked for a lengthy period like a year. This practice ensures the team has a long-term commitment to the project, and helps prevent volatility of the new tokens.

The two-month period set by Starkware for the Starknet tokens is now raising concerns, with one crypto user on X calling it “scammy” tokenomics.

“If u don’t think this is borderline criminal, I don’t know what to tell you,” said another user, Wazz, on the social media platform.

Retail investor sees emerging blockchain tech. Buys some, plans to hold long term

2 months later mcap triples, u have no idea why but ppl who minted tokens for FREE are dumping on u

Sorry but if u don't think this is borderline criminal I dont know what to tell you. https://t.co/jVRtBdRKP1

— Wazz (@WazzCrypto) February 14, 2024

Starkware CEO Dismisses Critics

Still, Ben-Sasson told Decrypt in an interview that the deviation from industry practices for the STRK airdrop was a strength, not a weakness.

Starkware co-founder Eli Ben-Sasson said in an interview with Decrypt that although more than 1.3 billion STRK tokens (valued at more than $2.15 billion) will be unlocked in April, he believes this will not cause harm to the community and the team’s main focus is Drive the…

— Wu Blockchain (@WuBlockchain) February 15, 2024

Starkware is already trusted by users and does not need lengthy token locks, he said, adding that Starkware’s 150-employee base was committed to advancing the project.

He also dismissed the notion that lengthy token unlocks prevent price volatility, arguing that the price could also plunge after a one-year lock up.

The former professor at the Israel Institute of Technology in Haifa believes in rewarding investors and contributors early, saying there was no risk of his team taking advantage of the airdrop structure.

Watch Out For This Other Airdrop

Another airdrop being closely watch by investors is one planned by SMOG that it’s team says will be the greatest in history. The Solana-based meme coin has allocated 35% of the token’s supply for airdrops. The specifics of that airdrop will be shared soon.

Smog is up 25% in the past 24 hours to trade at $0.05243 as of 8:00 a.m. EST.