Lookonchain revealed that Andrew Kang (Co-Founder of the crypto-focused venture capital firm Mechanism Capital) lost over $430,000 in a single day after the recent crash of the digital asset market liquidated his long positions.
- Kang’s positions opened on August 18 included Bitcoin (BTC), Ethereum (ETH), and Arbitrum (ARB), as he traded with up to 100x leverage.
- However, he lost all 14 long trades that day due to the market crash and his risky strategy. The total losses equaled approximately $432,000.
But every long position was liquidated because he used up to 100x leverage.
He was liquidated 14 times in total and lost ~$432K in only 1 day. pic.twitter.com/6P9j6SRDK1
— Lookonchain (@lookonchain) August 21, 2023
- Some X (Twitter) users commented below the post that trading with such high leverage is equal to gambling, warning investors to be more careful when entering the ecosystem.
- As CryptoPotato previously reported, the crypto market crash, more specifically bitcoin’s plunge to as low as $25,300 at the end of last week, triggered nearly $1 billion in liquidations.
- Still, the largest single liquidation took place on an ETH-BUSD trade on Binance, wiping out a trader for over $55 million.