Cryptocurrency trader lost $ 2 million on transactions with MON cryptocurrency

Editor’s note: not financial advice!

A crypto trader has suffered losses of almost $ 2 million after a series of unsuccessful transactions with the new MON token issued by the Monad blockchain. According to Finbold, citing analytical resource Lookonchain, the losses occurred within hours of the coin’s launch on secondary markets, when its price experienced sharp fluctuations.

According to blockchain analytics, the trader opened aggressive long positions at around $ 0.034 per token. However, after a short-term surge, when MON rose by almost 99% within a day, the price reversed sharply. This triggered a chain reaction of liquidations: one of them cost the trader more than $ 963,000, while others ranged from tens to hundreds of thousands of dollars. As a result, the entire position was almost completely lost.

The incident took place against the backdrop of one of the largest token sales of the year, organized on Coinbase's new launch platform. The MON sale lasted for a week and attracted about 86,000 buyers from more than 70 countries, who invested a total of $ 269 million, exceeding the initial limit of $ 187.5 million by 1.43 times. At the same time, only 10.8% of the total issue of 100 billion tokens was released into circulation, partly through a public sale for $ 0.025 and partly through an airdrop. The rest of the tokens remain locked for the team, investors, and ecosystem funds, which has drawn criticism from the community due to the «insider» nature of the distribution.

MON showed significant volatility immediately after the launch: the demand for the new Monad network, which launched with active applications and developers from day one, provoked a rapid price increase, but limited liquidity and low supply led to a sharp drop. According to BitMEX co-founder Arthur Hayes, such stories are typical for new blockchains: he believes that most new Layer-1 projects with an overvalued price will not survive the competition, and only Ethereum ETH $3,104.38 Bridged Ether (StarkGate) 0.80% Market capitalization $71.17 million VOL. 24 hours $0.39 billion and Solana SOL $137.98 Binance-Peg SOL 1.64% Market capitalization $0.15 billion VOL. 24 hours $0.28 billion have long-term viability.

The MON trader’s losses are another example of the risks of high volatility in the crypto market, especially when launching new tokens with low circulation and increased speculative demand.