A recent incident in the crypto world saw a major player, known as a crypto whale, lose a staggering $4.5 million while attempting to long Ethereum (ETH) not once, but twice. The digital asset tracker, Lookonchain, reported this unfortunate turn of events.
The whale initially suffered a loss of $500,000 during their first attempt to long the popular smart contract platform. However, their losses multiplied significantly during their second try.
According to Lookonchain, the whale sold off all 10,701 ETH (equivalent to $33 million) on the Binance exchange just two hours ago in order to repay a debt. Unfortunately, this move resulted in a loss of over $4 million once again. The whale’s strategy involved depositing ETH on Compound, a decentralized lending platform, and borrowing USDT to purchase more ETH.
Interestingly, Lookonchain also observed that while this particular whale faced significant losses, other whales were busy accumulating Ethereum. For example, one whale withdrew 10,000 ETH worth $31.5 million from Binance on Monday and staked it in the decentralized finance (DeFi) project Pendle. Additionally, they also invested in Renzo, a liquid restaking token for EigenLayer, a restaking protocol built on the Ethereum network.
In another instance, a different whale withdrew 5,282 ETH worth $48.2 million from the Binance and OKX exchanges on the same day.
As of now, ETH is trading at $3,093. Over the past week, this second-ranked cryptocurrency has experienced a decline of nearly 12%, and over the past month, it has dropped by more than 14%. Moreover, Ethereum is currently more than 36% below its all-time high of $4,878, which was achieved in November 2021, as reported by CoinGecko.
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Disclaimer: The opinions expressed in articles published on The Daily Hodl are not to be considered investment advice. It is crucial for investors to conduct thorough research and analysis before engaging in high-risk investments involving Bitcoin, cryptocurrency, or digital assets. Please be aware that any transfers or trades you undertake are done at your own risk, and you are solely responsible for any losses you may incur. The Daily Hodl does not endorse or recommend the buying or selling of any cryptocurrencies or digital assets, nor do we provide investment advice. Please note that The Daily Hodl participates in affiliate marketing.
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