A trader recorded nearly $2 million in realized losses after a series of long positions on crypto startup Monad‘s recently launched MON token.
According to Lookonchain, losses of approximately $1,9 million have accumulated since the start of trading on November 30, during which MON experienced sharp price fluctuations.
Network data shows a string of liquidations and forced exits, including one liquidation that cost more than $963,000. Losses for other trailers ranged from tens of thousands to $300,000.
Trader transactions with MON. Source: Lookonchain
The trader opened a long position near $0,034, but a sharp intraday reversal knocked the MON price off its peak, triggering a cascade of liquidations. Even though MON had risen nearly 99% at one point, the precipitous decline seen on the price chart instantly wiped out the trader’s position.
Monday’s 24-hour price chart. Source: OKEX
Major losses occurred during one of the largest token sales ever held on the Coinbase platform. The week-long sale attracted nearly 86,000 buyers from over 70 countries.
The project initially attracted long-term investors. As a reminder, MON launched with 10,8% of the 100 billion token supply unlocked, with the remaining tokens (team, investor, treasury, and community) remaining locked for many years.
The combination of high initial demand and low circulating inventory led to a sharp rise in the price of MON and an equally rapid recovery.