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Cardano Trader Lost $45M After ADA Falls 22%

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A traders lost $45 million worth of ADA in a single trading session. The token has slumped down from its previous all-time high record to 22%. 

Cardano (ADA), the single-digit coin is traded for over $45 million. The token has slumped down from its previous all-time high record with the rest of the crypto market. As per the data shown by market tool Bybt, such figures for an altcoin trade is rare as compared to Bitcoin.

The trader lost almost $45million after ADA decreased 22%. 

Taking a toll on traders

The decline in the prices of the ADA token has led to a big toll on the traders. Liquidation for the uninitiated happens when traders borrow excess capital from brokerages or exchanges, which is also termed as margin or trading futures. This they do to place more big bets on the assets they trade. 

There is a fixed fee that the trader has to pay. On the other hand, exchanges close these positions at a predetermined rate when the trader’s collateral is equal to the loss on that position. This type of trade is called liquidated. 

Traders have borrowed more than what their books would allow them and contributed to what became an overheated, overleveraged market. For such trader, the day has proved not so lucky for him. The $45million liquidation order happened on the Crypto exchange Huobi which belonged to a single entity. This could be speculated either an individual who is very wealthy or a trading firm making bets on the rise of ADA. 

Analytical view

As per the analysis by the Bybt, the order given was part of the $67million worth of ADA trades that got liquidated in the Huobi exchange alone. The amount was double those of ADA liquidations on Binance ($37 million) and nearly five times more than Bybit ($12million). 

More than $127million worth of ADA was liquidated on many crypto exchanges, with 90% of those being long trade. 

ADA has increased to almost 8000% since the past year and 30% from the past month. This had happened at a time when there were debates and talks doing the round about the smart contracts and big adoption of Cordano in Africa. This has led to many people investing in the world’s sixth-largest cryptocurrency. 

It is observed that a trader dealing in Bitcoin has invested in ADA  despite the $45million liquidation. He took the cake for the highest liquidation overall. A bitcoin trader on Huobi with the value of $67million was liquidated after the asset temporarily fell under $30,000.

Hence, the total dump is accounted for $8.59 billion worth of liquidation. More than $3.62 billion is coming from the bitcoin alone. Dogecoin traders also lost $225million in DOGE punts. 

The news on Cordano was first published by CryptoSlate. 

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