Cardano Whale Loses $6.2 Million in Low Liquidity Swap
A Cardano whale, inactive for five years, lost $6.2 million in a single swap. The holder tried to trade 14.45 million ADA, worth $7.08 million, in a low-liquidity pool. However, the swap returned only 847,694 USDA tokens. The wallet became active again on Sunday, sparking discussions in the crypto community.
This loss highlights the risks of trading large amounts in low liquidity markets. The wallet address involved is available for public viewing on Cardano Explorer. Many community members criticized Cardano’s liquidity problems in its DeFi ecosystem.
Whales Sell 440 Million ADA Amid Market Pressure
Crypto analyst Ali reported that whales sold 440 million ADA in one month. Data from Santiment showed significant selling from holders owning 100 million to 1 billion ADA. The sell-offs started in late September and continued through mid-November.
Strong selling by whales has exerted price pressure. Cardano’s ADA traded at $0.4919 at the time of writing, down 2% over 24 hours and 21% over the past month. This decline signals weak investor confidence amid rising sales.
Similar Liquidity Issues in Broader Crypto Market
Other crypto projects have also faced liquidity errors recently. Last month, Paxos accidentally minted 300 trillion PYUSD tokens due to a technical error. Paxos identified and burned the excess tokens within 30 minutes. Aave paused PYUSD markets temporarily as a precaution.
