James Fikelfounder of the Amarant Foundation, lost R$240 million betting that Ethereum would be worth more than BitcoinThe bet was made through a long position on the ETH/BTC pair that was opened earlier this year.
Ironically, the millionaire is said to have built his fortune as one of the first Ethereum investorswhich also explains his passion for currencies.
One of the reasons What contributed to this bet going wrong were US ETFs. This is because Bitcoin was well received on Wall Street, while Ethereum did not attract as much attention from the traditional market.
Moreover, the strong competition from Ethereum in the ‘smart blockchains’ sector is another point to consider. On the other hand, Bitcoin, seen as digital gold, has no competitors.
Millionaire loses R$240 million betting on Ethereum
Just like Bitcoin, Ethereum created several millionaires who believed in the project. One of them was Alexis Ohanian, co-founder of Reddit, who turns R$55,000 into R$93 millionanother was James Fikelfounder of the Amarant Foundation.
While Ohanian has already divested some of these ethers, Fickel remained a firm believer in the project and earlier this year Millions Bet Ethereum Would Surpass Bitcoin.
However, such a gamble backfired. This is because the ETH has lost 26.5% of its value against BTC since then.
“James Fickel lost approximately ETH 18,000 ($43.7 million/R$240 million) betting on the rise of the ETH/BTC trading pair.”
“From January 10 to July 1, he borrowed 3,061 WBTC ($172 million/R$981 million) on Aave and exchanged it for 56,445 ETH at a rate of 0.05424.”according to analytics firm Lookonchain. “Since August 7, he has spent US$12 million (R$66 million) worth of USDC to buy 211 WBTC and exchanged 16,000 ETH for 671 WBTC (US$39.9 million/R$215 million) at a rate of 0.042 to pay off the debt to Aave.”
“He currently owes 2,196 WBTC ($132 million/R$704 million) on Aave, while he has lost around 18,000 ETH ($43.7 million/R$240 million) in total!”
This Sunday (15) another Ethereum investor moved his coins for the first time in 8 years, converting an investment of R$282,000 into R$211 millionDespite the gains, the move could mark a moment of weakness for ETH, with it being abandoned even by former whales.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
