Fantom Foundation Wallet Sells $CVX, Faces Massive Loss

A wallet linked to the Fantom Foundation recently sold 357,108 $CVX tokens for $1.15 million in USDT. This significant transaction caused the price of $CVX to drop by approximately 5%, according to SpotOnChain.

A wallet linked to Fantom Foundation sold 357,108 $CVX for 1.15M $USDT in the past hour, causing the price to drop ~5%.

Notably, this wallet spent $12M to buy 436K $CVX at ~$28 in Mar 2022 and then sold the tokens over the past 2 years at only ~$3.38 ($1.49M).

That is a loss of… pic.twitter.com/DjX6Moavny

— Spot On Chain (@spotonchain) June 28, 2024

Wallet Linked to Fantom Foundation Loses $10.7M on $CVX

This wallet has interesting history. In March this year, it used $12 million to purchase 436000 $CVX tokens at an average of approximately $28 per token. However, in the past two years, the wallet has been able to sell these tokens at an average of $3.38 per token. The total amount from these sales is a mere $ 1.49 million.

From this series of transactions, the wallet suffered a significant amount of loss. The value that has been obtained by subtracting the selling price from the purchase price represents a loss of 87.8%, or $10.7 million. This is a major financial loss for the wallet associated with the Fantom Foundation.

The recent sale and the corresponding lower price are indicative of the fluctuations and inherent risks associated with cryptocurrencies. Such sales have an effect on the prices of tokens and thus bear consequences to the other investors in the large market. For instance, the $CVX token has been through volatile times, and this volatility is attributed to the volatility of investors in the crypto market.

Fantom Foundation Wallet Loss a Reminder of Crypto Risks

As for the Fantom Foundation, which has made a great contribution to the development of the blockchain and DeFi sector, it has not released any statements regarding this operation. The causes that contributed to this decision and the time at which it was made are unknown, but one thing is obvious: it is financially unprofitable.

This event is a good case to reflect on some of the challenges that such investments as cryptocurrencies entail. It’s often possible that prices experience rapid fluctuations and large volumes of trades can cause drastic changes in price. They should therefore be ready to deal with such oscillations and the consequent possible risks in the investment process.

That is why events such as this remind investors to perform due diligence, properly analyze potential investments, and manage risks within the innovative and growing cryptocurrency market.