As revealed by Lookonchain, a mysterious user of the decentralized perpetual exchange GMX raked in approximately $1,000,000 after the crypto market crashed in mid-August since they shorted Ethereum at a high price a month ago.
The trader opened the short position on July 14, when ETH was worth around $2,000 (per CoinGecko’s data), and closed it on August 17, when the second-largest cryptocurrency by market capitalization dipped to almost $1,700. The generated profit equaled nearly $1 million.
The GMX trader waited a bit and opened another position, but this time betting that Ethereum’s valuation will head north. The entry price was $1,624, whereas ETH currently trades at over $1,660.
A GMX trader shorted $ETH at a high price on Jul 14 and closed the position after the market crashed on Aug 17, making nearly $1M.
Then went long $ETH immediately, the entry price was $1,624, and the current profit is $189.5K. pic.twitter.com/h97b6XMm3k
— Lookonchain (@lookonchain) August 21, 2023
Lookonchain disclosed that the trader in question has been highly successful, seeing eight out of their ten trades profitable.
It is worth mentioning that other crypto participants did not have the same success and registered significant losses due to the recent correction of the market.
As CryptoPotato reported earlier this week, Andrew Kang (Co-Founder of the crypto-focused venture capital firm Mechanism Capital) parted with more than $430,000 on August 18 as he opened long positions on Bitcoin (BTC), Ethereum (ETH), and Arbitrum (ARB), using up to 100x leverage.
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Here is How a Trader Profited $1 Million After the Crypto Crash
As revealed by Lookonchain, a mysterious user of the decentralized perpetual exchange GMX raked in approximately $1,000,000 after the crypto market crashed in mid-August since they shorted Ethereum at a high price a month ago.