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A significant loss recently occurred on the Cardano blockchain when a wallet that had been inactive for five years came back online to swap 14.4 million ADA, worth approximately $6.9 million, for 847,000 USDA stablecoins. This resulted in the USDA’s price temporarily rising significantly.
The holder had likely accumulated the ADA through an earlier investment. During that period, ADA prices were significantly lower. As a result of the mistake, the trader lost approximately $6.05 million, receiving only $847,000, according to blockchain investigator ZachXBT.
The trade came from a Cardano wallet that had not been used since 2020, which recently made the large transfer. ZachXBT noted that the swap was meant for USDA, a fiat-backed stablecoin for easy payments and DeFi applications. Unfortunately, low liquidity on the exchange caused extreme price swings, pushing USDA’s value well above its intended $1.
The temporary price change allowed fast traders to profit while the market corrected itself. The lack of clear warnings on slippage in the exchange’s user interface worsened the situation, leaving the trader with much less than expected. Experts believe that the likelihood of no low liquidity warning in the UI contributed to the trader’s loss.
OTC trades are common for large amounts to avoid disrupting the market. The incident shows a gap in Cardano’s system, as the USDA’s compliance and dollar backing did not protect against trading risks. Reactions from the community range from sympathy to criticism, with some mocking the trader’s oversight.
The USDA was launched by Anzens on March 6, 2025, to strengthen Cardano’s financial system. It is fully backed 1:1 by US dollars, which helps protect users from the fluctuations in crypto prices. However, the recent liquidity crisis showed that even strong assets can face challenges during large trades.
Meanwhile, mishaps like this have always been a part of crypto trading. For example, a seller accidentally listed five Pudgy Penguins NFTs for just $175, incurring a loss of over $500,000. According to sources, the error stemmed from confusion between currency denominations.
The seller mistakenly entered 35 USDC instead of 35 ETH, a significant difference in value. And just last week, a bitcoin user mistakenly paid nearly one whole BTC as a transaction fee while sending just $10 to the crypto exchange Kraken. The fee amounted to 0.9999 BTC, valued at about $105,831 at the time.
The post 5-Year Dormant HODLer Gets Rekt, Loses $6M in ADA Swap appeared first on CoinTab News.
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