In the image, the company highlights that the investor made four large contributions to the cryptocurrency at the beginning of April. Two of them were exactly at the top. Your exit happens at the worst possible price for it.
Angry investor. Livecoins/Midjourney.
An unknown investor lost around R$70 million by investing in a single cryptocurrency. According to information from Lookonchain, the unfortunate man bought the top in April and, after two months of decline, decided to accept his fate.
The cryptocurrency in question is Ethena (ENA), the governance token of the stablecoin Ethena USDe (USDe). The project was widely supported by billionaire Arthur Hayes, who even stated that ENA could increase in value 10 times.
Regardless, these losses could happen with any other cryptocurrency. Therefore, the case provides some lessons for other investors about market risks.
Investor buys at the top and sells at the bottom
Famous analytics company, Lookonchain frequently presents information about the movement of large whales. Last month, for example, they highlighted a purchase of R$127 million in 5 tokens by a single entity following the approval of Ethereum ETFs in the US.
However, the case presented this Wednesday (12) is not a success story. The investor in question had the largest stake position in Ethena (ENA), but appears to have been unable to withstand two months of declines.
“The largest ENA staker withdrew all 23.24M ENA ($17.3M) from stake 13 hours ago and sold 19.36M ENA ($14.1M) at a loss,” wrote Lookonchain . “He withdrew 23.24 million ENA ($30M) from Binance when the price was $1.29 between April 10th and April 5th.”
“Currently, he has 3.88 million ENA (US$2.74M) remaining, with a loss of over US$13 million (R$70 million)!”
The largest $ENA staker unstaked all 23.24M $ENA($17.3M) 13 hours ago and sold 19.36M $ENA($14.1M) at a loss.
He withdrew 23.24M $ENA($30M) from #Binance at $1.29 between Apr 10 and Apr 5.
He currently has 3.88M $ENA($2.74M) left, with a loss of more than $13M!… pic.twitter.com/T2Akf6havZ
— Lookonchain (@lookonchain) June 12, 2024
In the image, the company highlights that the investor made four large contributions to the cryptocurrency at the beginning of April. Two of them were exactly at the top. Your exit happens at the worst possible price for it.
One strategy that could have avoided this catastrophic scenario is called DCA (Dollar Cost Averaging). In other words, instead of buying everything at once, the investor could have divided his payments over more days, which would result in a lower average price.
This method has existed even before the creation of Bitcoin, being used in traditional investments. However, it has gained popularity in the world of cryptocurrencies due to its high volatility. Even El Salvador adopted this practice, purchasing 1 BTC per day, to avoid buying tops.
The case also shows the dangers of the market. After all, although this is one of the biggest bull markets in history, there is no guarantee that all projects will rise.
TranslateBitcoin is the easiest way to become a millionaire, says Robert Kiyosaki
Alex Guimarães - Crypto Use49m・4.1k views
Explaining his position, the writer states that it is “almost certain” that prices will continue to rise, not so much because of Bitcoin itself, but rather because of the incompetence of its political leaders. The list includes names like Joe Biden, Janet Yellen and Jerome Powell.
Robert Kiyosaki. Image: Youtube
Robert Kiyosaki, author of the book 'Rich Dad, Poor Dad', revealed on his social networks what is the easiest way to become a millionaire. According to the writer, investing in Bitcoin is the best option to achieve this goal.
A big fan of scarce assets like gold and silver, Kiyosaki has started to include Bitcoin in his recommendations in recent years. In his latest prediction, he claims that BTC will reach $350,000 in the coming months.
Explaining his position, the writer states that it is “almost certain” that prices will continue to rise, not so much due to Bitcoin itself, but rather due to the incompetence of its political leaders. The list includes names like Joe Biden, Janet Yellen and Jerome Powell.
Bitcoin is the best way to become a millionaire, says Kiyosaki
Written in 1997, the book ‘Rich Dad, Poor Dad’ is one of the most successful books in the world. Translated into more than 40 languages, the book has sold more than 40 million copies and transformed Robert Kiyosaki into a financial market icon.
Even migrating to the digital world, the author continues to give his advice to his disciples. This Tuesday (11), for example, Kiyosaki revealed the easiest way to become a millionaire.
“Bitcoin is the easiest way to become a millionaire.”
“Making millions as an entrepreneur is difficult. You have to be really smart, dedicated and lucky to become a millionaire by starting your own business”, wrote the author of ‘Rich Dad, Poor Dad’. “I keep Bitcoin because Bitcoin does the hard work for me. This is why I love Bitcoin.”
BITCOIN is the easiest way to become a millionaire. Making millions as an entrepreneur is hard. I know. You have to be really smart, dedicated, and lucky to become a millionaire starting your own business. I save Bitcoin because Bitcoin does the hardwork
for me. That is why I…— Robert Kiyosaki (@theRealKiyosaki) June 11, 2024
Robert Kiyosaki believes Bitcoin will reach US$350,000 in 2024
In another publication, written on Wednesday (5), Robert Kiyosaki made a bold prediction about the price of Bitcoin. According to the author, BTC will reach US$350,000 in the coming months.
“I am confident that Bitcoin will reach $350,000 sometime in 2024, but for now it is just a target, a dream and a wish.”
“I continue to buy more Bitcoin, Ethereum and Solana because I am quite certain that their prices will continue to rise,” Kiyosaki wrote. “Why am I so confident? Is it because I'm right about Bitcoin, Ethereum and Solana? My answer is “No”. I am confident about the incompetence of our leaders, President [Joe] Biden, Treasury Secretary [Janet] Yellen and Fed Chairman [Jerome] Powell.”
BITCOIN will be $350,000 by August 25, 2024 is not a lie. It’s a prediction. It’s speculation, it’s an opinion, but it’s not a lie. It’s suckers bait, but it’s not a lie becuase any prediction about the future is not a lie. I want $350,000 BITCOIN to be a fact, and I want it to…
— Robert Kiyosaki (@theRealKiyosaki) June 5, 2024
For those who have been following Kiyosaki for a long time, what stands out most is not his optimistic forecast, but rather the inclusion of Ethereum and Solana in his predictions. After all, the author usually only focuses on Bitcoin, gold and silver.
Finally, Bitcoin is priced at US$67,000 at the time of writing. This means that its price would need to rise 520% to reach Kiyosaki's target, a possible number, but difficult for such a short space of time.
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