Lookonchain, a popular organization investigating this crypto Industry research, came across one recently crypto whale who made some bad decisions. The whale accepted several times Ethereum (ETH) would increase sharply. Unfortunately, the market collapsed shortly after each major investment. And that cost him many millions.
Whale loses millions in cryptocurrencies due to bad timing
A whale is an individual or organization that holds large assets in the form of cryptocurrencies. They are important to the industry as their decisions can significantly affect prices. If they decide to sell their fortune (sometimes several billion), the price can fall quickly. Recently, Lookonchain came across a whale that has several millions in Ethereum Bitcoin (BTC) own.
The purse decided on a series of unfortunate moments long position take. This means that the price is expected to increase. Leverage can be used for this. Assuming someone invested $10,000 in a x2 leveraged coin, the exchange would add another $10,000 for additional returns. The exchange itself then also receives a portion of the profit to provide the extra money.
However, this also entails risks. For example, if the price falls, the whale could lose all its money on a 50% fall. Finally, the investment is then reduced by 10,000 euros, i.e. by the amount that was originally invested. This is what happened to the whale investing twice in ETH using leverage. Because the whale did this right before a crash every time, it lost a whopping $5.1 million.
This whale really isn’t good for permanent contracts.
This whale’s ETH long positions were liquidated at a loss of about $5.1 million in the last two market crashes.
– Lookonchain (@lookonchain) August 31, 2023
The trading strategy requires some adjustments
The crypto whale didn’t stop there, however. On August 29, Ethereum’s price skyrocketed when Grayscale won a lawsuit. When the price had already risen sharply, the whale decided to step in as well, valued at $1,717. And guess what, two days later, the price dropped more than 6% to $1,608. It is not yet known how much money the whale lost as a result.
Commentators under Lookonchain’s message are advising the whale to take a closer look at its investment strategy. They say there is still work to be done. One of the comments below the post on X (formerly Twitter) reads, “Oops! Looks like this whale needs a better strategy! Let’s hope their fortunes turn around this time!”