While virtual currencies are renowned for their volatility, new surprises never end in the market. Today, according to data reported by Onchain Lens, a whale suffered massive losses after selling tokens at a loss. This activity signals that whales are beginning to panic and sell at lows.
Whale losses $14 million
In a post shared on X today by Onchain Lens, the whale sold 531.7 billion PEPE tokens for $4.1 million DAI, losing $7.02 million. The whale purchased these PEPE coins for $11.1 million in December 2024.
Also, the whale sold 88 million BEAM tokens for $709,000 DAI. He currently holds 173.6 million BEAM tokens worth $1.41 million.
As per data, the whale initially bought all 261.6 million BEAM tokens for $9.28 million. However, today’s sales rendered him a loss of $7.15 million. In total, this whale has suffered a loss of $14.17 million as a result of selling the PEPE and BEAM tokens.
Holding some BEAM tokens in his wallet means that the whale had tested success with BEAM, giving some good profits. Such wins gave him confidence not just in reinvesting in BEAM, but also in acquiring PEPE, a prominent meme coin.
His aggressive accumulation signifies the high-risk, high-reward attitude normally witnessed in digital asset trading. He held his investment for several months. However, his sales activity today happened at a time when prices of PEPE and BEAM are down.
Although the specific reasons for the price declines are not known, the ongoing volatility within the broader market appears to be the major cause. As the prices continued to fall, the investor moved to minimize losses by selling the tokens. The whale transacted sales worth $4.809 million but triggered a disastrous loss of $14.17 million.
Lessons learned from this whale’s activity
Crypto investors can learn a lot from this whale’s heavy loss. The accident provides multiple important lessons for people engaging in the market.
First, risk management is essential. People should never invest more money than they can afford to lose. The investor’s aggressive investment, after initial profits, indicates the risk of overconfidence and insufficient risk mitigation plan.
Secondly, the need to diversify a portfolio across several assets can help minimize risk. The third point is that investors should be prepared for price volatility. They should avoid panic selling or purchasing tokens based on short-term price swings.
Lastly, while profit-taking activity is important, investors should be careful and take profits when they are in a better position. Greed normally makes investors miss opportunities and incur losses. Like the case above, this whale could have avoided such massive losses by cashing out profits earlier.
