How Crypto Investor Fickel Lost $43 Million in Ether-Bitcoin Bet

September 14, 2024 William Ross Cryptocurrency News, Stock Market 0

Crypto Millionaire’s $43 Million Bet Gone Wrong

James Fickel, one of the world’s wealthiest cryptocurrency investors, has suffered a staggering loss of $43 million in a high-stakes Ether-Bitcoin trading bet. Fickel, who currently holds more than $4.8 million worth of Ether, saw his debt on the decentralized lending platform Aave balloon to $132 million.

Fickel, an early Ethereum investor and the founder of the longevity research firm Amaranth Foundation, had bet on Ether’s price rising against Bitcoin. “From Jan 10 to July 1, he borrowed 3,061 WBTC (worth $172 million) from Aave and exchanged it for 56,445 ETH at a rate of 0.05424,” reported Lookonchain. However, Ether’s price has underperformed compared to Bitcoin, dropping by more than 24% year-to-date.

“Since Aug 7, he spent $12 million USDC to buy 211 WBTC and exchanged 16,000 ETH for 671 WBTC ($39.9 million) at $0.042 to repay the debt on Aave,” Lookonchain added. This strategy, which effectively took a short position on Bitcoin, backfired as Ether’s price continued to decline relative to Bitcoin.

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Fickel is widely known for his early investment in Ethereum, having invested $400,000 when Ether was only worth $0.80. Despite his recent losses, he remains a significant figure in the cryptocurrency world, with a net worth still in the hundreds of millions, according to CoinTelegraph.

The continuous outflows from US Ether exchange-traded funds (ETFs) have also contributed to Ether’s sluggish price action. According to Farside Investors, the ETH ETFs have recorded a cumulative $581 million worth of negative net outflows since their debut.

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William Ross
About William Ross 277 Articles
I am a cryptocurrency enthusiast and writer with over five years of experience in the industry. I have been following the development and innovation of Bitcoin and Ethereum since their inception, and I enjoy sharing my insights and analysis with readers. I have written for various reputable platforms, such as CoinDesk, Cointelegraph, and Decrypt, covering topics such as market trends, regulation, security, and adoption. I believe that cryptocurrency is the future of finance and technology, and I am passionate about educating and informing people about its benefits and challenges.

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