$1 Million Gone in a Flash? Crypto Trader Sees Massive Loss in Under 50 Days

As a seasoned researcher with over two decades of experience in the ever-evolving world of finance, I can’t help but shake my head at this latest turn of events. The $1.13 million loss in less than 50 days is a stark reminder of the wild ride that is cryptocurrency trading.


A cryptocurrency trader has lost more than $1.1 million in less than two months after making a large bet on popular decentralized finance platform MakerDAO (MKR), the entity behind the cryptocurrency-backed stablecoin DAI, in late July.

As per information from blockchain analysis service Lookonchain, a trader invested approximately 2.9 million dollars to acquire around 1,100 MKr tokens towards the end of July. The trader kept these tokens until this current month. Initially purchasing the tokens at $2,643 each, the trader has now transferred them to the prominent cryptocurrency exchange Binance, where the tokens’ value is currently $1,613.

It appears that the trader has decided to transfer their assets to Binance, which suggests they plan to liquidate their investments soon, resulting in a potential loss of approximately $1.13 million within just under a 50-day period.

Lost $1.13M in less than 50 days!This trader bought 1,100 $MKR($2.91M) at $2,643 on July 27 and deposited it to #Biance at $1,613 5 hours ago to sell, resulting in a $1.13M loss (-40%)! — Lookonchain (@lookonchain) September 14, 2024

Last month, the world’s largest cryptoasset manager, Grayscale Investments, a subsidiary of Digital Currency Group, unveiled the Grayscale MakerDAO Trust, which is designed to provide investors with direct exposure to MKR.

Later, it was revealed by MakerDAO’s co-founder Rune Christensen that the project would be moving forward with a rebrand to Sky. This transformation seems to be the culmination of over two years worth of development work, which has been focused on introducing new features and enhancing user experience within the decentralized finance (DeFi) sector.

In the core of Sky lies a pair of fresh additions, USDS and SKY. USDS functions as a stablecoin that users can swap from their current DAI or USDC holdings at a one-to-one rate. This token will be instrumental in the functioning of the Sky ecosystem, enabling various transactions within the platform.

In the meantime, SKY takes over as the latest governance token, replacing MKR. Those who hold MKR can choose to swap their tokens for SKY, giving them a say in the management of the Sky network. The governance structure remains decentralized, empowering users to help shape the direction of the protocol’s development.

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2024-09-18 03:35