Benzinga - A major Ethereum (CRYPTO: ETH) investor reportedly lost over $4.5 million in two failed attempts to leverage the cryptocurrency. The investor then sold $33 million worth of ETH to settle the debt.
What Happened: According to the Lookonchain report, the whale initially lost $500,000 while trying to long the top smart contract platform. The investor then lost a significantly larger amount on the second attempt.
“This whale sold all 10,701 ETH ($33 million) on Binance to repay debt two hours ago, losing more than $4 million again! He went long ETH by depositing ETH on Compound and borrowing USDT to buy more ETH,” Lookonchain stated.
The report also highlighted that other whales are accumulating Ethereum. One withdrew 10,000 ETH worth $31.5 million from Binance and staked it into the decentralized finance (DeFi) project Pendle (PENDLE) and Renzo, a liquid restaking token for EigenLayer. EigenLayer is a restaking protocol built on ETH.
The second whale withdrew 5,282 ETH worth $48.2 million from the crypto exchanges Binance and OKX on Monday.
This whale sold all 10,701 $ETH($33M) on #Binance to repay debt 2 hours ago, losing more than $4M again!He went long $ETH by depositing $ETH on #Compound and borrowing $USDT to buy more $ETH.
This is his second time losing money by going long $ETH.
Last time he lost ~$500K. pic.twitter.com/rVM3xB3GmR
— Lookonchain (@lookonchain) April 16, 2024
See Also: Will Bitcoin Slump To $20K Amid Increasing Middle East Tensions? Peter Schiff Doesn’t Rule Out Possibility, Citing Technical Pattern.
Why It Matters: The crypto market is experiencing heightened volatility, partly due to geopolitical tensions between Iran and Israel, affecting major cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum. Renowned crypto trader and economist Alex Krüger has advised investors to maintain a long-term perspective and exercise caution in these turbulent times. He emphasizes the importance of not getting caught up in short-term market movements.
Meanwhile, Ethereum’s ecosystem continues to grow, with Puffer Finance, an Ethereum-based liquid restaking protocol, recently reaching a $200 million valuation after a successful funding round. This indicates investor confidence in Ethereum’s long-term potential, despite the current market instability and individual losses such as those experienced by the whale.
Read Next: Dogecoin, Shiba Inu, Dogwifhat Among Top Picks For This Researcher’s ‘Meme Coin Supercycle’ Thesis
Photo by DrawKit Illustrations on Unsplash
Engineered by Benzinga Neuro, Edited by
Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you.
Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.