Crypto Trader Loses $2.53M in Panic Selling: What Went Wrong?
Successful crypto trading depends on hundreds of factors, but the same is true for failure. One such factor is the investor’s sentiments in the market, which could either build or destroy a token. This is what happened with the REEF token, whose price plunged drastically within a few hours, crashing the token and the portfolios of its holders. One of the biggest victims of the crash is this one crypto trader who lost $2.53M in panic selling.
What Went Wrong With This $2.53M Crypto Trading Loss?
A trader with three crypto wallets, with addresses 0x76e, 0xc49, and 0xfcc, jointly lost $2.54M after panic selling 866M REEF tokens. The popular analytics platform Spotonchain reported this incident on its X, revealing how a drastic price plunge made one crypto trader lose millions.
The page revealed that these crypto wallets are of one individual as a wallet funded the three with 0.1ETH each. This incident of heavy loss began with this trader withdrawing 955.549M REEF, worth $5.06M, from Gate.io between September 23 and October 12, 2024. He bought these tokens at the average price of $0.005 but ended up selling at $0.002 after the value dropped more than 71.8% in 27 hours.
The $REEF price further plunged by 58% today, wiping out a month’s worth of gains in just over a day!
Three wallets (one entity) appear to have panic-sold 866M $REEF ($2.07M) to #HTX, #KuCoin, and #Gateio in the past 2 hours, allegedly losing $2.53M (-55%).
Currently, they hold… pic.twitter.com/KWtgfgiwtu
— Spot On Chain (@spotonchain) October 16, 2024
However, the crypto trader sold only 866M tokens ($2.07M) on three popular crypto exchanges, HTX, KuCoin, and Geteio, bearing a loss of $2.53M. More importantly, he is still holding 89.45M tokens ($204K), bringing him another unrealized loss of $270K.
With this crypto trading experience, the trader has lost $2.8M, including the unrealized loss.
How is REEF Toke Performing Now?
Reef is one of the decently popular altcoins, where it is placed at 570th rank for its market capitalization of $48.90M, after a 6% drop in the last 24 hours. Moreover, past this price crash, the 24-hour trading volume has declined 65% to $128.18M. With this significant drop in these two, it is clear that the token is still struggling on the charts, currently valued at $0.00214 after an 8% drop today and 65% over the week. With this, the crypto trader’s remaining 89.45M token holding is worth $191K only.
However, it is nothing new for this token to face such heavy losses, as it has already struggled to recover since its massive drop at the beginning of its launch. In mid-March 2021, REEF’s price reached its ATH of $0.05841 before dropping $0.01254 in July. However, that is not all, as, despite a much-attempted new high peak at the year’s end, the token again collapsed. Ever since then, a downtrend has been continuing, with slight recoveries here and there.
Key Lesson From This Costly Crypto Trading Mistake
Crypto trading is full of profiting opportunities, but there is also high volatility that can turn the status of crypto within minutes. One can transform from loser to winner and vice versa, which means having a deep knowledge of the market and safe trading practices are mandatory. This gets more clear with this crypto trader’s experience, which lost millions within a few hours, as the REEF token price plummeted 71%. More importantly, in fear of further losses, the trader sold his holding in panic selling, which is not always the best practice. Regardless, it is not always such heavy losses, as during this time another crypto trading event, a trader doubled his investment in a different token. It clears how losses and profits exist simultaneously in this crypto market.
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