©Reuters.
LONDON – LayerX Capital, a digital asset management company, reported a significant loss of $10.4 million after transferring 3.62 million MATIC tokens to cryptocurrency exchange Binance. The transfer occurred at a rate of $0.91 per token, significantly lower than their initial acquisition price of $2.10 from prominent cryptocurrency market players Wintermute Trading and Binance.
The transactions that led to this loss took place over several key dates:
- On December 7 and 8, 2021, LayerX Capital raised funds by selling MATIC tokens.
- Throughout 2023, on June 21, November 14 and 22, and finally on December 7 and 8, the company transferred the tokens to Binance.
- The average sale price during this period was $0.878.
Unlike LayerX Capital’s losses, two cryptocurrency whales managed to make a small profit by redepositing MATIC on Binance. These whales had previously acquired the tokens at $0.904 and sold them at $0.910 over the past two days.
Another savvy investor deposited 3.64 million MATIC on Coinbase and can make a potential profit of $521,000 if he sells 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 actively managed its MATIC holdings by extracting a substantial amount from Polygon’s staking contract. This approach is a continuation of its previous strategy of destocking and selling MATIC in smaller quantities throughout the month of November.
The losses made by LayerX Capital highlight the volatile nature of cryptocurrency markets and the risks inherent in managing digital assets. At the same time, the contrasting results from other investors highlight the diversity of strategies and fortunes encountered by participants in the crypto space.
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