Social media big-shots & sophisticated long-time Ethereum believers got their millions flushed away as bears bite prices.
Leverage trading has always imposed more risks than Spot markets, due to the price sensitivity often erasing even the most rational crypto plays. While some traders garnered media attention due to netting millions of dollars in courageous plays, most of these celebrity crypto traders are now heavily in the red.
Erratic Market Catches Up On Big-Time ETH Believer
LookOnChain, a popular blockchain intelligence platform, revealed a list of seven such bad examples, while DailyCoin’s research crew dug into the specifics of some of these trades. First on the list is the Taiwanese music artist Machi Big Brother, who came up with 25-x leveraged positions on Ethereum (ETH), totalling $48.8M at its peak.
After a few unfortunate plays with 25-x leverage, this excessive sensitivity trading strategy just accelerated the losses, leaving Machi Big Brother with $1,718 on-balance, a devastating deficit of nearly $15 million, according to LookOnChain. However, the Taiwanese musician’s story doesn’t come near as close to crypto’s loco James Wynn.
From Rags To Riches, Then Back To The Trenches
The pseudonymous trader James Wynn gained publicity after quite a few successful plays on HyperLiquid, including the famed Bitcoin (BTC) long worth $1.23 billion at its peak. Starting off with $21.7 million principal due to being a very early Pepe Token (PEPE) investor, James Wynn had a lot of room to move, resulting in an $87 million profit.
Soon enough, the reckless trades with obnoxious leverages had taken its toll on James Wynn’s trading performance. The extravagant crypto trader not only lost all of the $1.23 billion profits, but also the initial $21.7 million principal, often ending up asking his X followers to chip in for the next play, coming out with multi-million plays in a day or two.
Aside from the curious case of James Wynn, the mystified Rolling-Long Whale paints a picture of how enormous gains can mess up the mindset. This strategy revolves around pushing the Futures contract to a later expiration date in hopes of multiplying the unrealized profit.
Indeed, this Rolling-Long Whale had just $125K to invest, applying the Rolling Long strategy to extend their profits to 344x, or $43 million from the initial $125K. However, the uncalled-for market reversal wiped out all of these gains (no stop loss), slapping a $90K debt on top of the lost funds.
Check out DailyCoin’s hottest crypto news today:
Chainers Finds Formula for Web3 Gaming Success, Tops 600K Players
Coinbase Calls on Treasury to Avoid Overreach in Stablecoin Rules
