Mysterious Whale Shifts Focus to Chainlink: Is a LINK Surge Coming?

Mysterious Whale Shifts Focus to Chainlink: Should Traders Follow the Whale?

According to on-chain statistics, the cryptocurrency trader who challenged Hyperliquid’s boundaries on March 12 with an extremely leveraged Ether deal has already entered another multimillion-dollar position, this time in Chainlink. According to Lookonchain, a Web3 analytics tool, the unidentified whale, known on X as “ETH 50x Big Guy,” took out long bets in LINK on March 14 for over $31 million using ten times leverage.

According to a March 14 X post by Lookonchain, he gambled on two well-known perpetual exchanges, Hyplerliquid and GMX. Furthermore, the whale accumulated about $12 million in spot LINK. According to on-chain statistics, the whale progressively decreased his LINK holdings over the next few hours by making minor swaps back into stablecoins.

Massive ETH Liquidation Costs Hyperliquid Millions: What Went Wrong?

A $200 million ETH long position was purposefully liquidated on March 12 by the unnamed trader, costing Hyperliquid’s liquidity pool, HLP, $4 million. The trader’s profits exceeded over $1.8 million. The trader has made around $17 million on Hyperliquid in the last month, according to Lookonchain.

The event brought to light the difficulties faced by perpetual trading platforms like Hyperliquid, which allow traders to enter long or short positions that are significantly bigger than the money they have deposited. According to Hyperliquid, the trader’s actions were a foreseeable result of the trading platform’s mechanics under severe circumstances rather than an exploit. Hyperliquid responded to the losses by announcing on March 13 that it had updated its collateral requirements for traders who had open positions to prevent future edge situations of this nature.

For more up-to-date crypto news, you can follow Crypto Data Space.