Although Ethereum co-founder Vitalik Buterin promised that the Ethereum Foundation would reduce token sales, a large crypto whale has opened a short position on Ether (ETH) worth over $100 million. According to Hypurrscan, a wallet with the address '0x50b...' executed a leveraged trade of 47,600 ETH. This was reported by Cointelegraph.com reports.
This trade was opened at a price of around $2,094.92 using approximately 23x cross-margin leverage. With ETH trading around $2,115, the position currently shows an unrealized loss of $994,000. The trader also paid a $2,145 funding fee to maintain the position.
The liquidation price for the position is around $2,150, leaving very little room for error. If the price of ETH rises slightly, the whale's loss could exceed $1 million or lead to the position being completely wiped out. Easing tensions between the US and Iran, which has increased risk appetite in global markets, could contribute to a recovery in the price of ETH.
Despite such an aggressive short position, Vitalik Buterin promised to reduce ETH sales to make the Ethereum Foundation's operations more streamlined and efficient. In a post on the X social network, Buterin emphasized that the foundation would focus on longevity rather than breadth and would not act like a centralized management structure.
The Ethereum Foundation has long been criticized for selling tokens. Critics argue that such trades, executed during weak market conditions, put additional pressure on the price of ETH. The new strategy aims to reduce the foundation's expenses and narrow its mission.
Read “Zamin” on Telegram!
