StarkNet Investing Risks: Trader Warns of Major Downside

The risks of putting money into StarkNet are in plain sight, a point trader Igor Negoda is making to investors in the wake of the token shedding half its value in a week. At 6 cents today, the price has left Negoda counseling caution given what he sees as market volatility and the prospect of manipulation.

Lockstone Capital’s AI Trading and Market Dynamics

Negoda is quick to note that while his firm Lockstone Capital makes use of artificial intelligence to turn a profit on crypto without having to watch the markets round the clock, no amount of sophistication will protect an investor from a general downturn. Case in point: a 3% slide in Bitcoin over the last week has been enough to cause considerable damage to altcoins, StarkNet most of all.

StarkNet Price Plunge and Whale Activity

In fact, the token has been hit hard, its value down 50% in seven days to 6 cents in the aftermath of the October 15 token unlocks. Negoda says he is seeing the ‘whales’ of the market divest their StarkNet holdings and would not be surprised if that portends more downside; after all, price manipulation can happen on an exchange such as Binance.

Potential Triggers for Further Decline

Then there is the matter of the Ethereum bridge for StarkNet. Should it be shut down, expect a steep devaluation, and with bearish sentiment and whale exodus already in evidence, those are risks that add up. “Until the market has put in a floor and consolidated,” he says, new positions are risky business.

Negoda’s Outlook for StarkNet Recovery

As for any talk of StarkNet getting back to $1, Negoda says that would require capital inflows on a scale that is not forthcoming at present. His recommendation is to show some patience and hold off on buying until things have stabilized.

This article reflects the channel author’s opinion and is not investment advice.