![Crypto Whale Facing Liquidation of ,470,000 WBTC Position on Compound: Lookonchain Crypto Whale Facing Liquidation of ,470,000 WBTC Position on Compound: Lookonchain](https://dailyhodl.com/wp-content/uploads/2023/11/Whales-Abruptly-Move-443.jpg?w=1024)
Crypto Whale Facing Liquidation of $26,470,000 WBTC Position on Compound: Lookonchain
A crypto whale with a $26.47 million position in Wrapped Bitcoin (WBTC) is cutting it close after barely escaping liquidation last Friday.
According to on-chain data tracker Lookonchain, a deep-pocketed whale with an Ethereum (ETH) address beginning with Oxceef was close to being liquidated on the decentralized finance (DeFi) platform Compound after Bitcoin dropped to as low as $52,550 on September 6th.
WBTC is an ERC-20 token backed 1:1 by Bitcoin. It allows holders to use the token as collateral for financial transactions in the Ethereum ecosystem.
Says Lookonchain,
“A whale is facing potential liquidations of 488.45 WBTC ($26.47 million) on Compound, with a health rate as low as 1.07 and a liquidation price of $50,429.
This whale was liquidated three times during the 2022 price crash, with a total of 74,426 cWBTC ($32.82 million) being liquidated.”
The firm also spotted other addresses selling Bitcoin as BTC dropped in price late last week. According to the firm, an address beginning with 3ExiBLw sold off 100 BTC worth $5.35 million for a profit of $206,000 once the price of Bitcoin dipped close to the entity’s break-even point.
On the flip side, Lookonchain cites data from analytics firm IntoTheBlock that shows 836,000 addresses bought roughly 402,800 BTC worth $21 billion between $51,113 and $54,303.
However, the blockchain tracker warns that those addresses may offload their holdings at breakeven prices.
Lookonchain also spotted crypto firm Galaxy Digital depositing 1,458 BTC worth over $78 million into Coinbase Prime. Since Coinbase Prime offers trading and custody services, Galaxy Digital could have sent the BTC stack either for safekeeping or to be sold on the open market.
At time of writing, Bitcoin is trading at $54,987.
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The post Crypto Whale Facing Liquidation of $26,470,000 WBTC Position on Compound: Lookonchain appeared first on The Daily Hodl.
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Author: Alex Richardson