Large-scale investors in cryptocurrencies, often referred to as “whales,” have been buying up approximately half a billion dollars’ worth of Ethereum ($ETH) over the past few weeks.
Based on information from the widely used on-chain analysis platform Lookonchain, significant cryptocurrency investors, referred to as “whales,” have been acquiring large amounts of the second most common digital currency during the past few weeks by transferring it out of Binance, a prominent cryptocurrency exchange.
According to the data, it’s possible that Justin Sun, the TRON founder, moved 4,666 ETH from Binance, approximately equal to $14.9 million, following his previous withdrawal of 132,054 ETH, which amounts to over $430 million, since April 8.
A whale with the wallet identifier “0x9EB0” took out 7,182 ETH from Binance, approximately equal to $23.5 million at current prices. Simultaneously, another large investor, known as “0x4446,” withdrew 11,892 ETH or around $39.9 million. Instead of selling their Ethereum, these whales chose to use it as collateral on Compound to secure loans of USDT, intending to hold the cryptocurrency for potential gains.
Whales are buying and stockpiling Ethereum!
— Lookonchain (@lookonchain) April 23, 2024
The crypto platform Lookonchain identified another large investor, “0x1958,” who transferred $16.28 million in Ethereum (5,1818 ETH) from a major exchange prior to staking the funds with decentralized finance protocols Bedrock and Pendle.
Significantly, it’s been announced that a major investor in cryptocurrencies, often referred to as a “whale,” suffered a loss of approximately $4.5 million. This occurred when they tried to increase their Ethereum holdings through a strategy called leveraging, which they attempted twice. Unfortunately, the price of Ethereum dropped, forcing them to repay their debt on a decentralized platform.
A few days ago, the whale incurred a loss. This happened after they borrowed USDT from Compound, a decentralized lending platform, initially using the loans to buy Ethereum (ETH). Later on, they were required to repay the loans.
After making an unsuccessful first try, the trader decided to proceed by transferring ETH-backed funds from Binance to a protocol in order to secure USDT loans. With the acquired USDT, they then purchased additional ETH, thus amplifying their initial position within the cryptocurrency market.
The information about the whale’s actions indicates that they had to sell their entire 10,701 ETH stake, worth around $33 million at the time, on Binance to pay off a debt caused by an unsuccessful long position investment. This transaction led to an extra loss of over $4 million.
On Compound, you need to provide collateral worth more than the value of the loan when borrowing. However, due to the unpredictable nature of cryptocurrency markets, there’s a risk that the value of the collateral may drop below the loan amount, leading to a liquidation event.
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2024-04-25 01:10