Crypto Millionaire Loses $43 Million on Failed Ethereum Bet
James Fickel, a notable figure in the crypto world and founder of the Amaranth Foundation, has experienced significant financial setbacks since early January.
His current debt on the decentralized lending platform Aave has soared to $132 million, with losses exceeding $43 million.
Fickel, an early Ethereum investor, initially anticipated that Ethereum would appreciate against Bitcoin when he borrowed $172 million in Wrapped Bitcoin (WBTC) on January 10. He then swapped this for Ether, betting on its rise relative to Bitcoin.
However, Ether has underperformed compared to Bitcoin this year, leading to substantial losses for Fickel.
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Since early 2024, Ethereum’s value relative to Bitcoin has dropped over 24% year-to-date and more than 9% in the last month.
As a result, Fickel has been forced to spend $12 million in USDC to acquire WBTC and convert a portion of his Ether holdings to manage his debt. His current debt, according to Debank data, reflects the fallout from his failed strategy.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
