Crypto Whale Loses $4.5 Million in Ethereum Longs
According to data from Lookonchain, a significant investor recently faced substantial losses of over $4.5 million in an attempt to capitalize on the rising value of Ethereum (ETH).
The investor initially suffered a loss of $500,000 while trying to take a bullish position on Ethereum. Despite this setback, they made another unsuccessful attempt, resulting in even greater losses.
In a recent move, the investor liquidated their holdings of 10,701 ETH, valued at $33 million on Binance, to settle debts, incurring additional losses exceeding $4 million.
Their strategy involved leveraging the decentralized lending platform Compound (COMP) by depositing ETH and borrowing USDT to acquire more ETH, a common practice among cryptocurrency investors.
While this investor faced significant losses, Lookonchain also observes a contrasting trend among other major investors.
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For instance, one investor withdrew 10,000 ETH valued at $31.5 million from Binance and allocated it into decentralized finance (DeFi) projects like Pendle (PENDLE) and Renzo, a token associated with EigenLayer, a staking protocol built on Ethereum.
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.
