Due to the highly volatile nature of the crypto market, losses are bound to happen when things go contrary to investors’ plans. Following a recent revelation, it looks like BitMEX founder Arthur Hayes might be entangled in a similar situation.
The founder might record a 64% loss on his investment in LooksRare (LOOKS), which he purchased in late 2021.
BitMEX Boss Feeling Some Major Investment Regret
Between June and November 2021, on-chain data shows Hayes loaded up on over 15 million LOOKS tokens. As of that time, he bought these tokens at the price of 29 cents for each. That’s close to $4.5 million worth.
2/ He bought 10.68M $LOOKS with a cost of 1,786 $ETH($2.76M at that time) from Aug 24, 2022 to Nov 3, 2022, the average buying price is $0.258.
And received 4.82M $LOOK($1.67M at that time) from #FTX in June 2022, with an average receiving price of $0.347. pic.twitter.com/eQDaFj7bEo
— Lookonchain (@lookonchain) February 8, 2023
Hayes must have bet big on LOOKS and the NFT marketplace LooksRare its powers since the NFT market was booming at the time. Unfortunately, the broader crypto market took a dip, and LOOKS felt the heat. It crashed to a pathetic 14 cents by the end of the year.
And in 2023, even while other coins were regaining power, LOOKS just couldn’t get it together. It’s still floundering around the $0.09 region as of the time of writing. This is happening even as NTFs are making a comeback.
Recently, eagled-eye crypto trackers noticed Hayes just moved 18 million LOOKs tokens to the OKX exchange.
Considering its current price, that’s about $1.6 million. It seems Hayes is getting prepared to tap out and sell his LOOKs at a loss. According to on-chain data, if he unloads the whole bag, he’ll lose almost $3 million. That’s not a good look for one of crypto’s former golden boys.
Lookochain said, “If he sells, he will lose -$2.87M or a 64% decrease.”
Will Hayes Stick with LooksRare Despite the Losses?
Presently, other holders are becoming skeptical about the future of LOOKS. This is because Hayes’s next action will affect the coin significantly. Know that if Hayes officially calls it quits and dumps his LOOKS, it could shake investors’ confidence.
We could see a panic spiral quickly, especially with NFT mania cooling lately.
Remember that LooksRare did really well when everyone was super excited about NFTs last year. At that time, lots of people were putting their money into projects like Bored Apes and Crypto Punks.
(Source: The Block)
Since many people started flooding in, the NTF marketplace became super busy, with almost $400 million being traded every day. And people were getting cool rewards for using the tokens.
It’s too bad for this sector that investors have shifted their attention since those crazy days in 2022.
NFT volumes in platforms like LooksRare tanked as the crypto was in bad shape. Right now, the daily trading is around $1 million. Therefore, if this well-known Arthur Hayes sells his bag completely, it could mean that the good days for LooksRare are over.
Then again, early this year, the NTF market showed signs of renewed interest. Maybe he might reconsider; who knows?
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