A simple deposit error has highlighted the immense risks associated with cryptocurrency investments, as one investor lost approximately $6 million in just eight days due to a single oversight.
A simple deposit error has highlighted the immense risks associated with cryptocurrency investments, as one investor lost approximately $6 million in just eight days due to a single oversight.
According to data from Lookonchain, a leading blockchain analysis platform, the investor in question deposited 2 billion PUMP into Binance when the price was $0.0064.
Unfortunately for the investor, Binance did not have a spot trading market for PUMP, and the funds could not be immediately withdrawn. Typically, it takes a while for crypto exchanges to correct such mistakes, and this time, Binance did not return the PUMP tokens to the investor until eight days later.
PUMP’s price experienced a significant decline during the interval between the deposit error and refund. According to Lookonchain, the investor transferred the PUMP tokens to Bybit after Binance refunded them, but had already lost approximately $6 million because of the price decline.
The reported event highlights the crypto market’s volatility and the risks associated with cryptocurrency investment. However, the same can be said about opportunities, too, considering the investor could have made significant gains if the market had moved in the opposite direction.
TradingView’s data shows that PUMP lost nearly 60% of its value over the past week following a temporary rally that saw the price surge to $0.006902. The trend reversed sharply, and the price fell significantly. PUMP traded for $0.003005 at the time of writing amid increasing selling pressure in the broader crypto market.
It is worth noting that the altcoin market cap has lost approximately $1 trillion in the past 24 hours following a widespread crash in the crypto market. Most top altcoins, including ETH, XRP, ADA, and SOL, experienced significant price pullbacks to retest crucial support levels. Analysts are observing the developing trend to see if the pullback is temporary or if the support will give way to further price declines.
