A whale lost $20.4 million after investing $23 million in AI Agent tokens on the Base blockchain, selling for just $2.58 million. This 88.77% decline represents one in every of the biggest retail losses in cryptocurrencies, with individual tokens plunging as much as 99%.
The extreme loss underscores the increasing fear of speculative bubbles within the AI ​​token market. Here, hype and unclear use cases result in extreme volatility in investment portfolios.
How a Whale Lost Over $20 Million on AI Agent Tokens
On-chain analytics platform Lookonchain tracked the whale's portfolio using six AI agent tokens. The biggest loss was at FAI, which cost $9.87 million, a decline of 92.31%. AIXBT resulted in a lack of $7.81 million, a decrease of 83.74% from the acquisition price.
The other positions also recorded sharp declines. BOTTO fell by $936,000 or 83.62%. POLY lost $839,000 and plunged 98.63%.
The largest percentage decline was recorded by NFTXBT, with a 99.13% decline and a lack of $594,000. MAICRO ended with a lack of $381,000, down 89.55%.
Cumulative profit and loss chart showing the continuing whale decline on AI Agent token. Source: Mint Office on X
The investor's wallet address now only accommodates $3,584 in various assets, mostly ETH and small holdings of BYTE, MONK and SANTA. The dramatic exit highlights the virtually complete losses brought on by AI agent tokens.
Speculation about AI agent tokens under scrutiny
Coinbase's Base blockchain is a preferred start line for AI crypto projects. However, the industry has been criticized for excessive hype and products that work to a limited extent.
Many AI agent tokens lack real-world utility, leaving traders vulnerable to quick wins and equally quick crashes.
Observers note that AI agent tokens often skyrocket based on guarantees quite than working use cases. Autonomous agents on the blockchain are attracting investor attention, but few projects are delivering functional results.
When sentiment changes, token holders face extreme risk as a result of low liquidity and utility.
“This could possibly be one in every of the worst investments ever. A whale/institution spent $23 million buying AI Agent tokens on #Base and today sold all of it for just $2.58 million, leading to a lack of $20.43 million (−88.77%),” Lookonchain noted.
The whale's exit coincides with waning enthusiasm for AI tokens in early 2025, when the sector plunged 77%.
After a rush of AI-themed investments in late 2024, investors are rethinking their goals as few projects achieve their goals. This trend is resulting in further price declines, especially for tokens with concentrated ownership and low liquidity.
Risk Management: Lessons for Investors
The whale concentrated its funds heavily in AI agent tokens on Base, lacking diversification and risk management.
Allocating $23 million to 6 correlated assets in a single narrative increased systematic risk. As sentiment modified, all holdings fell, highlighting the chance of concentrated positions.
Breakdown of losses across six AI agent tokens on the Base blockchain. Source: Lookonchain
Professional traders normally limit exposure to avoid excessive losses from failed narratives. The lack of stop losses or disciplined sizing caused the whale's losses to skyrocket.
At the time the positions were closed, restoring break-even status would have required extraordinary returns. The situation shows how quickly declines can occur without thorough evaluation and risk planning.
With NFTXBT and POLY losing over 98%, a serious comeback seems unlikely.
It stays uncertain whether this portends larger problems for AI agent tokens. Projects with strong technical teams and real development can weather the storm.
Tokens that capitalize on AI hype without solid support will likely proceed to struggle because the market demands results, not only guarantees.
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Article source: beincrypto.com
The post Whale Loses $20.4 Million in AI Agent Tokens in 88% Drawdown appeared first on Crypto Adventure.
