A trader who uses a risky strategy to invest on the ETH/BTC ratio. cryptocurrency whale suffered a massive loss of about $4 million last month.
Unidentified whale, to strengthen its position and Ethereum/Bitcoin He was using recurring loans to increase his exposure to the couple.
According to blockchain data, the whale has moved 1,100 BTC from Binance to Aave, a decentralized lending platform, in the past seven days. This move was probably to pay off their debts and close their positions.
The whale’s strategy consisted of depositing ETH on Aave, borrowing WBTC (a tokenized version of Bitcoin), sending it to Binance, exchanging it for ETH, withdrawing coins and repeating the process. In this way, he could increase his ETH holdings and profit from the increase in the ETH/BTC exchange rate.
However, the plan backfired as the ETH/BTC ratio fell by around 20% last month. This means that the whale’s ETH holdings have lost value compared to its WBTC liabilities, resulting in a negative balance. Whale had to liquidate some of its assets to cover its losses and avoid being liquidated by the platform.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price tracking right now by downloading our apps!