It is common for investors to lose their crypto assets, as this ecosystem is infested with bad actors. If this reason alone explains a large part of the asset losses recorded in the crypto industry, the sometimes questionable choices of investors justify the rest. This recently happened to an ether (ETH) whale.
Inopportune choices, and at least 4,274 ETH cryptos wasted!
According to recent information, a whale in Ether (ETH), the native crypto of Ethereum, saw its $13.84 million worth of ETH melt away. This sum represents the valuation of some 4892 ETH previously accumulated by the investor.
These assets, the whale lost them by the effect of a series of unfortunate investment choices. His first decision was to decide to sell, via Binance, 4,274 ETH valued at more than $6.85 million.
No luck. In the 24 hours following his decision to get rid of his assets, their prices suddenly exploded. A brutal rise which confirmed the untimeliness of his choice knowing that he would have limited his losses by taking advantage of this improvement.
But the whale compounded its losses by committing other errors of assessment. The sources report that she made the option to exchange 3,705 ETH staked, for 3,536 ETH. The operation is carried out with the aim of decoupling stETH, a tokenized version of ETH which is staked on Ethereum 2.0 to earn interest. This, in order to ultimately recover some ETH. A transaction which will cause him a net loss of 169 ETH. Which is no small feat given the current price of the asset.
An ETH investor who is too eager or too cautious?
Was the unhappy investor in a hurry to make margins? This is a question that we can legitimately ask ourselves when we know that the latter took possession of these ETH assets only last year.
At the time, one ETH was trading at around $2,830 compared to around $1,630 currently. Obviously, we immediately notice the monumental difference in the valuation of the asset between these two periods.
It is perhaps also the investor’s fear of seeing his assets continue to melt away which motivated him to put them on the market. Especially since he had originally acquired these cryptos with the aim of making margins, once their valuation had increased.
His hopes were dashed. Notably because he envisaged a drop in the price of Ether. A projection influenced by recent events related to the false confirmation of the approval of a spot Bitcoin ETF. This story reminds us of the need for any crypto investor to have reliable information before committing to any financial bet.
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