Crypto whale’s $181M bet on ether is going wrong, in a big way

This is how markets unwind, and, with blockchains, savvy users can all watch it live as it goes down.

Over the last few days, crypto watchers have been captivated by two large wallets that appear to be linked have $181 million in ether (ETH), with collateral in loans that are right on the edge of solvency.

  • Most of the debts are on the money market Aave (152,098.98 ETH worth $166 million at the time of writing, but the rest is on Compound (14,316.90 ETH worth $15.6M).

Why it matters: If the price of ether falls further, these debts will be liquidated, unleashing a gush of ether onto the market, which will drive the price of ether down even further.

Driving the news: Crypto’s winter is turning increasingly frigid, with Bitcoin sinking below the psychologically-charged $20,000 level early Saturday, and ether briefly dipping below $1000 as investors bail on digital coins. Both have shed…

Read more at www.axios.com

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