LONDON - LayerX Capital, a digital asset management firm, has reported a significant loss of $10.4 million after transferring 3.62 million MATIC tokens to the cryptocurrency exchange Binance. The transfer occurred at a rate of $0.91 per token, substantially lower than their initial acquisition price of $2.10 from prominent crypto market players Wintermute Trading and Binance.
The transactions leading to this loss unfolded over several key dates:
- On December 7-8, 2021, LayerX Capital raised funds through the sale of MATIC tokens.
- Throughout 2023, on June 21, November 14 and 22, and finally on December 7-8, the firm moved the tokens to Binance.
- The average selling price during this period was reported at $0.878.
In contrast to LayerX Capital's losses, two cryptocurrency whales managed to turn a slight profit by depositing MATIC back to Binance. These whales had previously acquired the tokens at $0.904 and sold them at $0.910 over the last two days.
Another savvy investor deposited 3.64 million MATIC to Coinbase (NASDAQ:COIN) and stands to gain a potential profit of $521k if they sell at the current rate. This profit calculation assumes a sale following their acquisition of the tokens at an average price of $0.743.
Additionally, Hermez Network has been actively managing its MATIC holdings by extracting a substantial amount from Polygon's staking contract. This move follows their previous strategy of unstaking and selling MATIC in smaller quantities throughout November.
LayerX Capital's realized losses highlight the volatile nature of cryptocurrency markets and the risks inherent in digital asset management. Meanwhile, the contrasting outcomes for other investors underscore the diverse strategies and fortunes experienced by participants in the crypto space.
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