A cryptocurrency whale just used leveraged borrowing to buy a large amount of WBTC, increasing the total WBTC held to 262.5 worth nearly 29 million USD.
This whale withdrew 145 WBTC from Binance, then sent 13 million USDT to the Aave platform to borrow more funds, continuing to buy an additional 117.5 WBTC, totaling 262.5 WBTC with a cost of about 110,286 USD each.
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The whale withdrew 145 WBTC from Binance and sent 13 million USDT to Aave.
Used leveraged borrowing to buy an additional 117.5 WBTC.
The total amount of WBTC held reached 262.5 with a total value of nearly 29 million USD.
What transactions has the cryptocurrency whale made with WBTC?
This whale withdrew 145 WBTC from Binance to a personal on-chain address and then executed a transaction using leveraged borrowing to buy more WBTC.
How is leveraged borrowing carried out to buy more WBTC?
After holding 145 WBTC, the whale sent 13 million USDT to the Aave lending platform, then used this amount as collateral to borrow more money and buy an additional 117.5 WBTC. This is a leveraged investment aimed at increasing the number of Tokens held.
Leveraged borrowing is a popular method that allows investors to increase purchasing power without requiring a large initial capital. However, the associated risks are also high if the market is volatile, which can lead to liquidation of collateral assets.
What is the total value and cost incurred for the amount of WBTC purchased?
The total amount of WBTC the whale is holding is 262.5, equivalent to nearly 29 million USD at current prices. The average cost for each WBTC is approximately 110,286 USD.
Calculating this cost is important to assess investment efficiency and financial risk. On-chain analysis data shows that the whale's strategy focused on WBTC is quite clear and systematic.
"Using decentralized lending platforms like Aave allows investors to leverage more effectively and expand their cryptocurrency asset portfolios."
- Ember on-chain analysis expert, report dated 27/08/2024
Frequently Asked Questions
What is WBTC and why are whales interested?
WBTC is an ERC-20 Token representing Bitcoin on the Ethereum network, widely used in DeFi due to its high interoperability and liquidity.
Why did the whale choose leveraged borrowing to buy WBTC?
This method helps increase the amount of Tokens held with low initial capital but also comes with high price volatility risks.
What is Aave in the cryptocurrency ecosystem?
Aave is a DeFi platform that allows users to deposit and borrow assets with algorithm-based interest rates.
What does withdrawing WBTC from Binance mean?
Helps increase asset control and prepare for more complex transactions, such as leveraged borrowing or staking.
How to track the activities of cryptocurrency whales?
Advanced on-chain analysis tools can be used to view large transactions and the investment strategies of whales.
Source: https://tintucbitcoin.com/nha-dau-tu-lon-vay-mua-1175-wbtc/
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