Crypto Whale Suffers $4.5 Million Hit in Ethereum Long Positions
A prominent crypto investor recently incurred substantial losses of more than $4.5 million while attempting to exploit the surging value of Ethereum (ETH), as per data from Lookonchain.
Initially, the investor faced a loss of $500,000 when taking a bullish stance on Ethereum, but their subsequent effort resulted in even more considerable losses.
In a recent move, the investor sold off their 10,701 ETH holdings, worth approximately $33 million on Binance, to settle debts, which led to additional losses exceeding $4 million.
The investor’s strategy involved using the decentralized lending platform Compound (COMP) to deposit ETH and borrow USDT to acquire more ETH, a popular technique employed by many crypto enthusiasts.
While this particular investor faced significant setbacks, Lookonchain also highlighted a contrasting trend seen among other major investors.
For example, another investor withdrew 10,000 ETH, valued at $31.5 million, from Binance and redirected it towards decentralized finance (DeFi) projects like Pendle (PENDLE) and Renzo, a token associated with EigenLayer, a staking protocol built on the Ethereum network.