Perpetual Protocol

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<p>Three days ago, a crypto whale—an individual or entity holding a significant amount of cryptocurrency—<a href="https://twitter.com/lookonchain/status/1701052440173498503?t=-xYiAhz1rbIllQnu69fB7A&amp;s=19" target="_blank" rel="noopener noreferrer nofollow">took</a> a calculated risk. The whale set up a secure Multisignature (Multisig) wallet, a type of digital wallet requiring multiple keys to authorize a transaction. This move signaled a serious investment strategy, designed to add an extra layer of security to the whale’s assets.</p> 
<p>The whale then made a substantial purchase, spending 4,509 Wrapped Ether ($WETH), equivalent to approximately $7.37 million, to acquire 6.8 million Perpetual Protocol ($PERP) tokens. The average purchase price? A seemingly attractive $1.08 per $PERP token.</p> 
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<h2 class="wp-block-heading" id="the-dump-a-quick-turnaround-and-a-hefty-loss">The Dump: A Quick Turnaround and a Hefty Loss</h2> 
<p>Fast forward to just 72 hours later, and the whale’s investment strategy took a nosedive. The same 6.8 million $PERP tokens were sold off for a mere 276 $WETH ($446,000) and 4.57 million Tether ($USDT), at an average selling price of $0.74 per token.</p> 
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<h2 class="wp-block-heading" id="the-aftermath-crunching-the-numbers">The Aftermath: Crunching the Numbers</h2> 
<p>When the dust settled, the whale’s losses were staggering. The total value of the sold $PERP tokens amounted to roughly $5.02 million—a far cry from the initial $7.37 million investment. This translates to an approximate loss of $2.35 million in just three days.</p> 
<h2 class="wp-block-heading" id="key-takeaways">Key Takeaways</h2> 
<ol> 
 <li><strong>Security Doesn’t Guarantee Success</strong>: The use of a Multisig wallet indicates that the whale took security precautions but still fell victim to market volatility.</li> 
 <li><strong>Timing is Everything</strong>: The rapid buy and sell-off suggest that even whales, often considered market movers, can misjudge market timing.</li> 
 <li><strong>High Risk, High Loss</strong>: The magnitude of the loss underscores the high-risk nature of trading in volatile crypto assets, even for well-capitalized investors.</li> 
</ol> 
<p>In a market as unpredictable as cryptocurrency, even whales can find themselves beached by sudden shifts in asset values. This case serves as a cautionary tale for both retail and institutional investors navigating the turbulent waters of crypto trading.</p> 
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<p>The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/how-a-crypto-trader-lost-2350000-on-perp-in-72-hours/">How a Crypto Trader Lost $2,350,000 on $PERP in 72 Hours</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

How a Crypto Trader Lost $2,350,000 on $PERP in 72 Hours

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