The cryptocurrency market is known for its price fluctuations, and ApeCoin ($APE) has recently been trending due to a dramatic price surge. Despite the given price rise of $APE over 100% within the last two days, one $APE whale investor lost millions, showing volatility and risk associated with crypto investments.
Despite $APE's price surge of over 100% in the last 2 days, and even factoring in staking rewards, this whale still lost $1.06M (-47%) on $APE!He bought 582K $APE($2.24M) at $3.85 in 2023 and staked it.After the price of $APE rose yesterday, he sold all 790K $APE($1.18M) at a… pic.twitter.com/lOuyH89v76
— Lookonchain (@lookonchain) October 21, 2024
ApeCoin’s Surge and the Whale’s Investment
The APE token linked to the Bored Ape Yacht Club spiked from $0.80 to $1.59 within several days, prompting attention from the crypto-sphere. Though this may have been an opportunity for many, the situation was not the same for this particular whale. The whale purchased these tokens right at the start, acquiring roughly 582K tokens for around $3.85 each for a total of $2.24M in 2023.
The investment was kept by the whale, and during the period he staked the coins, the whale received $208K $APE as a staking reward. The recent increase in $APE’s price prompted Whale to sell off all of the tokens. According to Lookonchain, 790K $APE were sold with the token trading at around $1.50 each, amounting to approximately $1.18M.
Even with a 100% rally on $APE, the whale was in for a big loss. After taking into consideration the staking rewards, whale sold his holdings at a 47% loss, which amounted to approximately $1.06M. Such a case gives a lesson that market timing and the volume of the investment made will impact the level of profitability, even with a token’s skyrocketing value.
Market Reactions and Insights
Discussions of this event raised questions regarding volatility movements in coins and the danger of massive investment. It also strengthens the notion that, while prices may increase in the short term, it is extremely difficult to pinpoint long-term price trends. Thus, investors should approach with great caution because even the best circumstances may bring about such consequences.Now, the attention goes to how the token will move in the next days or weeks and if APE token can sustain such an increase and not just experience a flash crash.
