Yesterday, the crypto industry experienced a major crash as a result of the Iranian attack on Israel. This had quite an impact; Nearly a billion dollars worth of crypto positions have been liquidated. Most of them were Bitcoin (BTC) positions, but also several altcoins, had a difficult time. And among the 260,000 people affected is a trader who had a very bad day.
From millionaire to bankruptcy in one night
A trader named @cryptonerd75 on X did not wake up peacefully yesterday. The day before he had been in the Memecoin PEPE invested its entire capital of $1.15 million. It started to bother him in the evening, but due to his tiredness he decided not to do anything about it until the next morning.
When he closed his account the next morning Crypto exchange Binance opened up, his heart sank. He had invested in the coin with 3x leverage. That is, if an amount of $100 is invested, another $200 will be borrowed from the exchange, making a total investment of $300.
The crash liquidated the trader’s investment, a risk of a leveraged investment. If the token crashes, the additional money will be returned with your original investment. The investment is then gone. By investing his entire fortune in PEPE, “Crypto Nerd” lost all his money. And in the event of a liquidation, there is no way to get the money back.
Just woke up and realized I was liquidated overnight.
I was PEPE for 3 times.
I lost everything I had.
I don’t even have $1,000 in my bank account, I have $1 million in Binance.
I have been involved in crypto since 2017.
Today I lost everything.
Feel like committing suicide 😭😭$PEPE $BTC pic.twitter.com/XAZeatuWW7
— Crypto Nerd (@cryptonerd75) April 12, 2024
Still Hope, Through “God’s Miracles”
The liquidation was very difficult for Crypto Nerd. Under his post on X, he posted several comments with suicidal thoughts. The trader said he spent years behind his laptop and sacrificed relationships. He had invested in PEPE following a positive announcement Coinbase, but lost years of work. He had less than $1,000 in his bank account.
Twelve hours after his shocking news on X, $180,000 was suddenly deposited into his Binance account. As it turns out; Binance does not have 100% liquidation. Instead, 83% of the investment will be liquidated. The remaining 17% is later deposited back into the account, which initially gives the impression that everything is gone. Despite this, the trader is holding almost $900,000 Crypto lost, but Crypto Nerd himself calls it a miracle from God.
Although it is very painful, it is also a wise lesson. Investing an entire asset using leverage is extremely risky. Especially when it comes to a memecoin like PEPE, where the biggest factor in increasing it is the “hype”. In addition, diversification of investments is also extremely important, which has also been completely ignored here.
In this case, the trader still performs “well”. Hopefully the dealer will decide to do things differently from now on. For now, however, it will be an example of what not to do.
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