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Crypto Whale Loses $4.5 Million in Ethereum Longs

source-logo  coinspress.com 18 April 2024 04:11, UTC

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.