No story better captures the brutal highs and lows of the fickle industry that is crypto quite like one trader’s journey in our confession series today, from $25 million to $240,000. It’s a typical “could have, would have, should have” gist wrapped in the aftermath of one of the crypto world’s biggest collapses—FTX.
The Rise: $750k Trust Fund to $25M
The story is set in 2021, during the glory days of the crypto bull run, when this user took a calculated risk, throwing in their $750,000 trust fund into the market. As tokens ballooned, they seized the moment, turning that initial investment into a cool $25 million.
“Bought into the crypto frenzy and made close to $25M in crypto off of a $750k trust fund back in 2021, held it til it turned into $8M on FTX in 2022,” the trader shared.
But there’s more to a crypto high than meets the eye, especially for traders who cannot keep their Fear and Greed meters in check.
I sold the claim for .05 cents on the dollar. pic.twitter.com/p5tk2kQ0NV
— Coinfessions (@coinfessions) September 28, 2024
The Fall, Holding Through the Storm
As 2022 rolled in, the air was already thinning in the crypto atmosphere. Prices started to deflate, and the trader watched their fortune shrink from $25 million to $8 million. However, rather than cashing out or diversifying their assets, the trader made the critical decision to store all their funds on FTX, a once-trusted exchange. This is where the story takes a sharp turn.
“[…] held it till it turned into $8M on FTX in 2022. Ended up using FTX as a bank account and storing all my money in there,” the trader admitted a decision that would soon prove disastrous.
FTX was on shaky ground, unbeknownst to many. By late 2022, the exchange hit rock bottom, taking billions of dollars of users’ funds.
The Critical Mistake: Selling the Claim
When FTX filed for bankruptcy, many traders were left with nothing. Some hoped to recover their funds, while others, like our trader, panicked. Feeling the pressure and unsure of how long the legal battles would drag on, the trader decided to sell their claim at just 0.05 cents on the dollar.
They probably thought, ‘Something is better than nothing. I couldn’t wait around for years hoping to get paid back.’ “FTX went bankrupt, and I sold the claim for .05 cents on the dollar. Paid taxes on the sale and after everything had $240k left,” the trader recalls, their tone heavy with regret.
By the time the dust settled, the trader was left with a teary fraction of their original wealth—a devastating fall from the $25 million grace. But there’s more.
The Final Blow: Waiting Would Have Paid Off
As it turns out, those who held onto their claims against FTX are now being paid back, not just in full but with interest. The legal process moved faster than anyone anticipated, and it was a gut-wrenching realization for the trader. Had they held on to their claim instead of selling it in a moment of panic, they would have regained their millions and more.
“Everyone is now getting paid back in full + interest, and I would have been a millionaire again if I had just waited and didn’t sell my claim,” the trader lamented.
Patience is Valuable
Crypto biz is famed for its intense fickleness, where both profits and losses happen in the span of months. This trader’s story alarms the importance of patience and timing. Simply put, don’t get swept up in the chaos and make decisions out of fear—those who remain calm and think long-term often come out on top.
“I wish I could go back and tell myself to wait. Sometimes, you have to weather the storm, even when it feels like the ship is sinking,” this poster must have thought.
This story simply teaches us that sometimes, the best strategy is to wait and watch the market settle. While the trader lost millions, the lessons learned are doubtless priceless—and in the end, that experience could be the ladder to their next fortune.
The post From $25M to $240K: How One FTX Trader’s Million-Dollar Dream Crashed appeared first on Coinfomania.
