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Starknet (STRK) launch fails to make an impact, massive volume drops observed

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Startnet (STRK) initially saw some positive momentum after the announcement of its token airdrop. According to data from CoinMarketCap, there was a major surge in initial volume as the listing price hit $3.66 hours after listing. 

However, the initial hype faded away as investors expressed reservations about the nature of the launch. There was criticism about token allocation and alleged insiders being rewarded with disproportionate tokens. 

With market sentiment at an all-time low, experts discuss the future of Starknet and explore the reasons behind its failure.

Massive drop in post-exchange listing for Starknet 

Startnet (STRK) is a leading layer-2 solution on the Ethereum blockchain. It is renowned for its scalability enhancements and configuration of zero-knowledge (ZK-proof) rollups. It has received widespread attention as one of the fastest-growing L2 solutions. 

Before its token launch, Starknet was praised by industry insiders for its technical advantages. The initial market performance after the launch reflected positive investor sentiment as well. It reached a high of $3.3 after its initial listing. 

But when analysts uncovered details about potential mismanagement in airdrop allocations, its value plunged to $1.96, losing over half its value. CoinMarketCap data for the last week reveal a negative trend, with a decline of 16.55%.

With a market capitalization of 1.4 billion, it ranks 60th among actively trading cryptocurrencies, a decline from 48th. With a powerful technical solution, Starknet still failed to make an impact. Let’s uncover what went wrong for the project in its initial launch. 

Why did STRK fail?

Several contributing factors played a role in the decline of Starknet (STRK). Here are some of the biggest ones: 

Airdrop distribution controversy

The outrage caused by the token distribution was a key contributing factor to the launch’s failure. The problem was discovered during the launch when many StarkNet users failed to qualify the airdrops’ criteria, and most users found the distribution method unfair. This called into doubt StarkNet’s distribution openness, prompting the community to conduct a thorough investigation. 

Increased selling pressure

Nearly 780 million STRK Tokens were awarded to reward community engagement; however, many recipients promptly sold them on the market instead of hanging onto the tokens, resulting in significant selling pressure.

Experts suggest caution in the present scenario, citing investor uncertainty and upcoming events like Bitcoin halving as significant factors in deciding how soon it may rebound from this setback.

Algotech(ALGT) prospects rising as presale stage 1 nearly sell out

Algotech (ALGT) is an innovative algorithmic trading platform with integrated machine learning that is gaining popularity among traders as a key tool for breakout spotting and hedging. The TradFi platform has maintained the trust of its community due to its outstanding achievement in presale, raising 1.3 million within a few days. 

Analysts have determined that based on these numbers, Algotech’s promises of dependability are supported by its features and concept of deflationary tokenomics, ensuring that the ALGT token price would rise as token scarcity increases. 

Currently priced at $0.04 and likely to grow to $0.15 by the end of the presale, early investors stand to benefit by approximately 275% on their investments, as well as governance rights that award profit shares depending on dividends.  

Learn more:

Visit Algotech Presale
Join The Algotech Community

 


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