The Whale's Six-Month Wait Cost Dearly: Shifted to Selling at a Loss on Solana!
A Solana (SOL) whale withdrew and staked SOL assets from the Kraken exchange six months ago, but due to a price drop, reinvested them at a loss of $3.1 million.
As moves by large investors in the cryptocurrency market frequently make headlines, a notable Solana (SOL) transaction recently drew attention. According to data from the on-chain analysis platform Lookonchain, a whale withdrew 48,185 SOL from Kraken six months ago when the SOL price was $240, and staked it for a total value of $11.58 million. However, the reversal of market conditions brought the whale a heavy cost.
Although the investor earned 1,673 SOL (approximately $286,000) in staking rewards during the six-month staking period, they could not overcome the sharp price drop in the market. In their last transaction, the whale had to reinvest 49,858 SOL back into the Kraken exchange and sell their assets for approximately $8.46 million, resulting in a total loss of $3.1 million.
While large investors typically generate passive income through staking and hedge against price fluctuations, this time the situation was different. The staking income obtained by the whale investor was insufficient against the sharp decline in Solana's price, failing to protect the investor from a significant loss. This situation demonstrates that staking rewards may not always provide an adequate buffer against market movements.
