coinspress.com
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.
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.