Ethereum

DeFi

Million

Planet

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 In a dramatic turn of events, a crypto whale recently executed a multimillion-dollar sell-off of Ethereum (ETH) to settle debt, only to incur a massive loss in the process.&nbsp;
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<a href="https://twitter.com/lookonchain/status/1780112707158679663/photo/2" rel="noopener noreferrer nofollow">As per the on-chain analytics platform LookOnChain</a>, the whale liquidated a substantial 10,701 ETH, valued at over $33 million, on Tuesday to meet financial obligations. However, the move resulted in an additional loss of approximately $4 million, adding to the already significant debt.
<blockquote class="twitter-tweet">
 This whale sold all 10,701 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a>($33M) on <a href="https://twitter.com/hashtag/Binance?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Binance</a> to repay debt 2 hours ago, losing more than $4M again!
 He went long <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a> by depositing <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a> on <a href="https://twitter.com/hashtag/Compound?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#Compound</a> and borrowing <a href="https://twitter.com/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$USDT</a> to buy more <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a>.
 This is his second time losing money by going long <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a>.
 Last time he lost ~$500K. <a href="https://t.co/rVM3xB3GmR" rel="noopener noreferrer nofollow">pic.twitter.com/rVM3xB3GmR</a>
 — Lookonchain (@lookonchain) <a href="https://twitter.com/lookonchain/status/1780112707158679663?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 16, 2024</a>
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The whale’s strategy was to initiate a long position on ETH by leveraging the Compound blockchain. They deposited ETH and borrowed USDT coins to increase their exposure to ETH, aiming to profit from a bullish market sentiment surrounding Ethereum. However, the market took an unexpected turn, leading to a reverse in their fortunes.
This unfortunate incident marks the second time the crypto whale has suffered losses due to entering a long position on Ethereum. Per LookOnChain’s report, a similar scenario occurred previously, and it resulted in a loss of around $500,000 from the whale’s portfolio.
This previous loss incident, <a style="color: #0000ff;" href="https://twitter.com/lookonchain/status/1772143460381782167" rel="noopener noreferrer nofollow">reported by LookOnChain on March 25</a>, unfolded when the whale deposited 11,275 ETH (equivalent to $37.4 million) into Binance. Taking advantage of a surge in the coin’s price, they withdrew 9,092 ETH (worth approximately $31.7 million) from Binance and subsequently borrowed an additional $18 million to acquire more ETH.
Meanwhile, Ethereum’s market performance appears to indicate a bearish trend. Over the past week, Ethereum’s market capitalization has experienced a notable decline, dropping from a peak of $433.37 billion to a low of $345.78 billion on April 13.&nbsp;
Although there has been some consolidation since then, with the market cap rebounding to $391.83 billion on Monday, April 15, <a style="color: #0000ff;" href="https://coinmarketcap.com/currencies/ethereum/" rel="noopener noreferrer nofollow">the current market cap stands at approximately $368.09 billion</a>, reflecting a 5.60% decrease from the previous day.
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The post <a href="https://defi-planet.com/2024/04/debt-repayment-turns-sour-crypto-whale-loses-4-million-after-selling-33-million-in-eth/" rel="noopener noreferrer nofollow">Debt Repayment Turns Sour: Crypto Whale Loses $4 Million After Selling $33 Million in ETH</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Debt Repayment Turns Sour: Crypto Whale Loses $4 Million After Selling $33 Million in ETH

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