Crypto Whale Loses $4.5 Million Attempting to Long Ethereum (ETH) – Lookonchain Report
Crypto Whale Loses $4.5 Million in Failed Ethereum Long Attempt
In a recent turn of events, a crypto whale has lost more than $4.5 million while attempting to long Ethereum (ETH) not once, but twice. The digital asset tracker Lookonchain reported the unfortunate series of events, shedding light on the risky nature of cryptocurrency trading.
According to Lookonchain, the whale initially lost $500,000 on their first attempt to long Ethereum, the top smart contract platform in the crypto space. Undeterred, the whale made a second attempt, only to lose a staggering amount of money in the process.
The whale’s ill-fated decision led them to sell all 10,701 ETH (equivalent to $33 million) on Binance in order to repay their debt, resulting in a loss of more than $4 million once again. The whale had gone long on ETH by depositing ETH on Compound, a decentralized lending platform, and borrowing USDT to buy more ETH.
While this particular whale faced significant losses, Lookonchain also noted that other whales in the market are taking a different approach. One whale withdrew 10,000 ETH worth $31.5 million from Binance and staked it into the decentralized finance (DeFi) project Pendle and Renzo, a liquid restaking token for EigenLayer, a restaking protocol built on ETH.
Another whale withdrew 5,282 ETH worth $48.2 million from the crypto exchanges Binance and OKX, indicating a diverse range of strategies among large crypto holders.
At the time of writing, Ethereum is trading at $3,093, down nearly 12% in the past week and more than 14% in the past month. The second-ranked crypto asset by market cap is also more than 36% down from its all-time high of $4,878, set in November 2021.
The volatile nature of the crypto market serves as a reminder of the risks involved in trading digital assets. Investors are advised to conduct thorough research and due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl does not provide investment advice and encourages individuals to be cautious in their financial decisions in the crypto space.
