🤔The cost of low liquidity: A long-time Cardano veteran suffers a loss of $6.05 million in a single transaction🌍
👀A long-term holder of Cardano ($ADA) recently made a disastrous trade that wiped out most of their assets instantly, highlighting the serious risks associated with low liquidity on decentralized exchanges. 👀After patiently holding 14.4 million ADA for nearly five years, this individual attempted to withdraw funds from assets, reportedly worth around $6.9 million, to convert to the stablecoin USDA.
💸Executing this massive sell order on a low liquidity pair resulted in immediate and significant slippage.🤔 Because the decentralized pool lacked the necessary depth to absorb the volume, the seller pushed the price of ADA to staggering heights relative to their own trade, receiving increasingly worse rates as the trade progressed. On-chain tracking, reported by leading analysts, confirmed the devastating outcome: the user only received about 847,000 USDA.
🤗The failure of this execution led to a staggering actual loss of approximately $6.05 million. This incident is a brutal cautionary tale, emphasizing the critical need for large investors to prioritize optimal execution strategies, such as using over-the-counter trading desks or breaking up trades, instead of relying on thin liquidity pools for large transactions.#BTC90kBreakingPoint #USStocksForecast2026 #Binanceholdermmt #BinanceHODLerMorpho @Brc蛙蛙 @peter_thiel @Eljaboom @Uweb $ADA
