Dragonfly Capital recently made significant moves in the market, with two of its addresses depositing 62.62 million AEVO tokens (equivalent to $25.04 million USD) into FalconX.

Reports suggest that this transaction clears out all of Dragonfly’s AEVO positions that were accumulated since May, leading to an estimated loss of $36.84 million.

Between May 13 and May 15, Dragonfly had withdrawn 63.23 million RBN tokens from Coinbase, purchasing them at an average price of $0.9882 per token. They then swapped RBN tokens one-to-one for AEVO. However, the market downturn hit hard—AEVO’s price has now dropped to $0.3999, marking a nearly 59% decline from Dragonfly’s entry point.

This series of transactions highlights the risks involved in trading and holding assets in a volatile market. What was once a significant investment of approximately $61 million has now dwindled to $25 million, leaving Dragonfly Capital with a massive unrealized loss. The sharp drop in AEVO’s value, paired with the liquidation of all positions, signals a strategic retreat from this asset amid unfavorable market conditions.

Dragonfly’s actions underline the ongoing challenges that even large investors face in the cryptocurrency space. The rapid decline in AEVO’s price, compounded by the significant loss of nearly $37 million, serves as a stark reminder of the unpredictability in the market. For Dragonfly Capital, this marks a considerable setback, yet it also opens up speculation about how they will navigate future investments following this major liquidation.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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