One massive crypto whale, deemed to be a meme coin insider due to previously successful trades to a hardly-believable level, has embarked on an eye-watering losing spree. Qwatio, the pseudonymous crypto whale in question, has banked $6.8 million back in March.
Top Crypto Whaleโs Secret Trick Revealed
A few days ahead of Donald Trumpโs strategic crypto reserve announcement, the crypto trader opened a 50x leveraged long position on both Bitcoin (ETH) and Ethereum (ETH). On top of that, the trading period had seen this whale placing a 50x leveraged play on Melania Trumpโs signature MELANIA meme coin.
However, this time was much different. Qwatio got liquidated 3 times over the span of 3 days, even though Qvatioโs previous playbook included a strategy outsmarting HyperLiquidโs mechanics, LookOnChain notes. The March trade was so successful that HyperLiquidโs decentralized exchange (DEX) capped Etherโs max leverage to 25 times.
Hereโs Where Things Turn Dark For Qwatio
Despite placing sophisticated & well-timed crypto plays on Derivatives markets, Qwatioโs rivals exploited his technique on Jelly (JELLY), a popular meme coin. Later on, the liquidations started falling in. The first massive liquidation came in on a 40x short on Bitcoinโs (BTC) price in mid March, when Qwatio was hunted by crypto whales trying to flush out the positions.
By adding margin on time, this major crypto player managed to get out of the situation in profit, but their most recent plays tell a different story. The wealthy trader continued to open short double-digit leverage price plays on both Bitcoin (BTC) and Ethereum (ETH), but saw at least partial liquidations.
While the 40x Bitcoin short-sell is now worth $500K less than the original value, the 25x short on Ethereum (ETH) is also down by $100K. Combined, these speculative crypto price plays are worth $198 million, while Bitcoinโs $110.88K reclaim & Etherโs (ETH) $2.58K restoration would wipe the freshest positions as well.
On The Flipside
- The affiliations with Melania Trumpโs executive team have not been proven, so the insider status is uncertain.
Why This Matters
The effervescent crypto market presents a challenge even for high-rolling experienced traders, as technical analysis canโt define the impact of macroeconomic factors like geopolitical changes or the constantly shifting social sentiment.
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A crypto whale, allegedly an insider, lost $12.5M across eight liquidations in a week, including $20.11M in Ethereum (ETH) and $30.4M in Bitcoin (BTC). High-leverage trades went south, wiping out massive positions in a volatile market.
Whales, who hold large crypto amounts, can sway markets with their trades. This $12.5M loss shows even big players can crash hard, sparking buzz about market volatility and the risks of over-leveraged bets. Itโs a wild ride that grabs attention
Leverage amplifies gains but also losses. Using 40x leverage, as seen in similar whale trades, means a small price drop can liquidate huge positions. This whaleโs $12.5M wipeout highlights how fast things can spiral in cryptoโs volatile market.
Whale liquidations can trigger short-term price dips, but the market often recovers. If youโre holding long-term, focus on fundamentals. Avoid high-leverage trading yourselfโmost retail investors lose big when mimicking whale strategies without deep pockets.
Stay cautious: donโt over-leverage your positions, set stop-losses, and only invest what you can afford to lose. Track whale moves via tools like Whale Alert, but donโt blindly follow. Do your research, diversify & read DailyCoin to navigate cryptoโs wild swings safely.
