A whale recently made headlines by selling a substantial amount of Ethereum (ETH) for $13.58 million. It resulted in a significant financial loss. This massive transaction involved 5,088 ETH. The whale experienced a loss of $3.66 million compared to the original value of the withdrawn Ethereum, according to Lookonchain.
Whale’s Ethereum Transaction Results in $3.66M Loss After Price Decline
The whale had first transferred 5,088 ETH from the largest cryptocurrency exchange Binance between March 28 and April 3. At this time, ETH was valued at $3,389 per each token or coin. This implied that the total value of the ETH that had been withdrawn was roughly equal to $17.24 million at that time.
However, when the trader dumped the Ethereum recently, the price was low, making the total sale value $13.58 million. The price reduction led to a substantial decline in the share value of $3.66 million. This large swing in price highlights some of the many dangers of trading in cryptocurrencies.
Major ETH Sale Reveals Risks in Cryptocurrency Investment
It should be noted that such large transactions can have significant effects on the market sentiment and prices. Large volumes of sales of cryptocurrencies affect the total number of coins in circulation and thus the price of the asset. This sale acts as a resulting reminder of the kind of risks which come with investment of cryptocurrencies.
Ultimately, it denotes the need for investors to undertake their research and update them on the market conditions and the prevailing prices.
Source: https://blockchainreporter.net/ethereum-whale-sells-5088-eth-for-13-58m-faces-3-66m-loss/