Machi Sells NFT at a Loss, Holds ETH Long Position
On-chain data shows that crypto trader Machi withdrew 1,540 USDC from Binance. He then sold Bored Ape #5715 for 8.3 ETH (approximately $15,570), which he purchased three years ago for 34.17 ETH, resulting in a loss of over 75%. The proceeds are used to maintain his current long position of 2,800 ETH, valued at about $5.3 million. The liquidation price for this position is at $1,863.08, close to the current market price, indicating significant margin pressure. In recent years, Machi has repeatedly sold Bored Ape NFTs to supplement margin for high-leverage positions, accumulating trading losses in the tens of millions of dollars. Market mechanisms dictate that individual high-leverage longs facing insufficient margin are forced to sell low-liquidity NFT assets for stablecoins or ETH to inject margin; funds flow from the NFT market to perpetual contract longs, putting pressure on NFT sellers, while leverage platforms and market makers benefit as liquidation risks rise. Source: Public Information
ABAB AI Insight
As an early Bored Ape holder and high-profile leveraged trader, Machi has repeatedly opened high-multiple ETH and BTC long positions on platforms like Hyperliquid over the past few years. After facing multiple liquidations, he continues to supplement margin through NFT sales, forming a fixed path of "selling collectibles to maintain positions," which is highly similar to the behavior of several NFT whales selling blue-chip assets during the bear market of 2022-2023 to maintain contracts. In terms of capital flow, he converts profits from early NFTs and memecoins into perpetual contract margin, continuously selling remaining Bored Apes for liquidity, motivated by betting on an ETH price rebound to break even. Strategically, he is funneling illiquid collectible assets into the high-leverage derivatives market, amplifying personal risk exposure. Similar cases can be seen with several BAYC holders selling NFTs to save contracts after the Terra collapse in 2022, as well as some DeFi whales liquidating blue-chip assets before high-leverage liquidations. Currently, Machi is still in a phase of high-leverage expansion and passive deleveraging, with personal positions shifting from asset accumulation to survival maintenance. The structural judgment indicates a concentration of capital and transfer of pricing power: the high-leverage behavior of individual whales is exposed through on-chain transparency, forcing the NFT market to become a backup liquidity pool for contract margins; the mechanism transmits derivative liquidation pressure to low-liquidity assets, making the position risks of a few high-profile traders a source of short-term pricing disturbances for the entire NFT sector. ABAB News · Cognitive Laws
- High leverage will ultimately consume all non-core assets.
- The assets with the worst liquidity are often the first to be used to put out fires.
- On-chain transparency turns individual liquidations into public market conditions.