In the volatile world of crypto trading, emotional reactions can either fuel a token’s rise or accelerate its fall. Recently, a major price drop in REEF token highlighted how such reactions can lead to significant losses. Within just a few hours, REEF’s price plummeted, severely impacting investors’ portfolios. One of the most significant victims was an investor who panic-sold, suffering a loss of $2.53 million.
How a $2.53 Million Altcoin Loss Occurred
Using three different wallets, the investor sold off 866 million REEF tokens, incurring a massive loss. The wallets, identified as 0x76e, 0xc49, and 0xfcc, were all linked to the same individual. Popular analytics platform Spotonchain reported this incident, highlighting how a sudden price drop led to millions of dollars in losses. The data showed that the investor had purchased 955.549 million REEF tokens between September 23 and October 12, 2024, on Gate.io at an average price of $0.005.
However, when REEF’s price dropped 71.8% within 27 hours, the investor sold the tokens at just $0.002, suffering substantial losses. As a result, the price continued to fall another 58%, wiping out gains accumulated over the previous month. Despite selling 866 million tokens for $2.07 million, the investor’s overall loss totaled $2.53 million. Additionally, the investor still holds 89.45 million REEF tokens, representing an unrealized loss of $270,000, bringing their total loss to nearly $2.8 million.
The $REEF price further plunged by 58% today, wiping out a month’s worth of gains in just over a day!
Three wallets (one entity) appear to have panic-sold 866M $REEF ($2.07M) to #HTX, #KuCoin, and #Gateio in the past 2 hours, allegedly losing $2.53M (-55%).
Currently, they hold… pic.twitter.com/KWtgfgiwtu
— Spot On Chain (@spotonchain) October 16, 2024
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REEF Token’s Struggles in the Market
Although REEF is a relatively popular altcoin, its market cap fell to the 570th position following this price drop. The token’s market value declined 6%, sinking to $48.90 million. Meanwhile, its 24-hour trading volume dropped 65%, reaching $128.18 million, signaling ongoing struggles for the token. As of now, REEF is trading at $0.00214, marking an 8% decline in value, with a 65% loss in the past week alone. This has brought the remaining 89.45 million REEF tokens in the investor’s portfolio down to just $191,000.
Another Blow for REEF Token
Significant losses like this are not new for REEF. Since its launch, the token has faced sharp declines and struggled to recover. In March 2021, REEF hit its all-time high of $0.05841, but by July, the price had dropped to $0.01254. While the token attempted to climb again later that year, it eventually collapsed once more. Although there have been minor recoveries since then, REEF has remained in a long-term downtrend.
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