Two Whales Short STRK Amid Starknet Valuation Controversy and Partially Exit With Gains Today

Two major cryptocurrency whale addresses have taken short positions on STRK following a controversy over Starknet's valuation, as of January 15, 2026. The move was prompted by a tweet from Solana's official account, which highlighted Starknet's low daily user and transaction activity compared to its $1 billion market cap according to reports. The whales, identified as the "Shanzhai Air Force Leader" and an address starting with 0x023, used approximately 5x leverage in their shorting strategy as data shows.

The whale addresses began unwinding portions of their positions today to lock in profits, having entered their shorts at an average price of $0.0897 according to analytics. Their shorting strategy generated a 15% return as of today as reported. The partial exit signals a tactical move to reduce exposure while securing gains in the wake of market uncertainty according to analysis.

Blockchain analytics firm HyperInsight has been monitoring the whale activity, providing insights into the actions of these large investors as observed. The firm noted the controversy surrounding Starknet's valuation as a key factor in the whales' decision to short the asset according to their findings.

Why Did This Happen?

The controversy was sparked by Solana's official tweet, which drew attention to Starknet's low daily active users and transactions as documented. This raised questions about the sustainability of Starknet's valuation, prompting large investors to act according to reports. The whale addresses took short positions as a way to hedge against potential volatility in STRK's price as data indicates.

Market observers have pointed to the broader debate over how public blockchains are valued according to analysis. Starknet's performance metrics, while strong in certain aspects, were contrasted with its market capitalization by critics as noted. This discrepancy appears to have influenced the whales' decision to bet against STRK according to reports.

How Did Markets React?

The partial closure of the whales' short positions led to a temporary increase in STRK's price volatility as observed. However, the overall impact on the broader crypto market has been limited so far according to data. Traders monitoring the situation are watching for any signs of larger market-moving moves from the whales as reported.

The action has also sparked discussion on social media platforms and among traders in the crypto community according to analysis. Many are assessing whether the move signals a broader shift in sentiment toward Starknet or if it is a temporary reaction to the controversy as reported.

What Are Analysts Watching Next?

Analysts are closely watching whether other whales follow suit and whether the short positions lead to further downward pressure on STRK as observed. The leverage used by the whale addresses means that any rapid price swings could result in additional activity according to data.

Market watchers are also monitoring the broader implications for the valuation of public blockchains according to analysis. The incident could prompt renewed scrutiny of how metrics like daily active users and transactions are factored into market valuations as noted.

Investors are advised to remain cautious and consider the potential for further volatility in STRK and related assets according to reports. While the current move has not significantly impacted the broader market, the actions of large investors can have ripple effects in the crypto space as observed.

The controversy highlights the importance of aligning technical performance with market expectations for blockchain projects according to analysis. Analysts suggest that further clarity on Starknet's long-term fundamentals will be needed to stabilize investor sentiment as reported.