With the highly volatile nature of the crypto market, investors are bound to experience losses when things go wrong. Following a recent revelation, it seems that BitMEX founder Arthur Hayes might be dealing with a similar situation.
Hayes may be facing a 64% loss on his investment in LooksRare (LOOKS), which he purchased in late 2021.
Between June and November 2021, on-chain data shows Hayes loaded up on over 15 million LOOKS tokens. At the time, he bought these tokens for 29 cents each, which amounted to close to $4.5 million.
He must have made a big bet on LOOKS and the NFT marketplace LooksRare due to the booming NFT market at the time. Unfortunately, when the broader crypto market took a downturn, LOOKS also suffered, crashing to just 14 cents by the end of the year.
And even in 2023, when other coins were recovering, LOOKS continued to struggle. It’s still hovering around the $0.09 region as of the time of writing, despite the resurgence of NFTs.
Recently, crypto trackers discovered that Hayes moved 18 million LOOKs tokens to the OKX exchange, signaling that he might be preparing to sell at a loss. According to on-chain data, if he sells, he’ll lose almost $3 million, a 64% decrease.
At this point, other holders are becoming skeptical about the future of LOOKS, knowing that Hayes’s next move could significantly impact the coin. If Hayes decides to call it quits and sell his LOOKS, it could shake investors’ confidence, leading to panic selling, especially with NFT mania cooling lately.
Last year, LooksRare performed well when NFTs were all the rage, with many people putting their money into projects like Bored Apes and Crypto Punks, and the marketplace boasting almost $400 million being traded every day.
(Source: The Block)
Given these recent developments, the future of LOOKS seems uncertain, and the crypto community eagerly awaits Hayes’s decision regarding his holdings