Whale Faces Massive $26.47 Million Liquidation on Compound
CryptoNewsTerminal Staff07 Sep, 2024
Whale Faces Massive $26.47 Million Liquidation on Compound
Compound, a prominent lending and borrowing platform, has a whale facing a potential liquidation of 488.45 WBTC, which equates to approximately $26.47 million. On-chain data provider Lookonchain brought this situation to light via Twitter, disclosing the whale's current Health Rate stands at 1.07, close to the critical threshold of 1, triggering liquidation. The liquidation price is set at $50,429. This whale has previously endured liquidations three times during the market downturn of 2022, resulting in the liquidation of 74,426 cWBTC, valued at roughly $32.82 million. The current liquidity squeeze adds to the whale's financial woes, exacerbating their losses. As the cryptocurrency market remains volatile, traders, particularly those utilizing leverage, face substantial risks. This incident serves as a stark reminder of the importance of managing risk effectively and the potential consequences of overleveraging in volatile market conditions.
