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Crypto Exchange Binance Announces Support for New Ethereum Layer-2 Scaling Altcoin Starknet (STRK)

February 21, 2024

Top global crypto exchange Binance has rolled out trading support for the new Ethereum (ETH) layer-2 scaling project Starknet (STRK).

Starknet kicked off its first token allocation on Tuesday.

The project plans to distribute more than 700 million Starknet tokens to nearly 1.3 million addresses.

Eligible individuals and groups will have four months to claim their tokens, and unclaimed STRK will be distributed in future rounds.

Binance attached a seed tag to STRK. The exchange applies seed tags to lower-liquidity tokens that have more volatility potential, and users who own assets with tags are required to pass quizzes every 90 days to ensure they’re aware of their inherent risks.

STRK, which is already the 60th-ranked crypto asset by market cap, is down more than 53% from its launch price of $3.55. The token is trading at $2.05 at time of writing.

The Starknet is a decentralized validity rollup, otherwise known as a zero-knowledge (ZK) roll-up.

Rollups are solutions that execute transactions outside of Ethereum’s blockchain but record the transactional data. The two types of rollups are optimistic rollups and ZK rollups. Optimistic rollups automatically assume transactions are valid, while ZK rollups run computations off the chain and then submit a validity report.

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