Speculator Opens Short Position on XMR – Case of an Experienced ZEC Trader

Insights from the cryptocurrency market provide another example of professional traders engaging in speculative strategies. A well-known trader, who built a reputation through significant short positions on ZEC, recently shifted focus to another anonymous asset – Monero (XMR). This transaction demonstrates how experienced market players move between different projects seeking profit opportunities.

Details of the New Short Position on XMR

The trader’s address, identified as 0xd475…, opened short positions on over 2,500 XMR with a value of approximately $1 million. The position was opened at a price of $708.78 per coin. The liquidation level was set at $10,633.86, indicating fairly liberal safety margins. At the time of opening, the position was profitable, as the market price of XMR was around $400.37. Currently, at the current price of $235.14, these positions remain deeply in profit – indicating the trader’s accurate market assessment.

Trader’s History – From Massive Losses to Profitable Positions

The same address gained notoriety in the community due to aggressive short strategies on Zcash (ZEC). The investor opened initial short positions at a price of $184 per ZEC – involving significantly larger financial commitments. At one point, paper losses reached as high as $21 million, which could discourage less experienced speculators. However, the trader was not deterred by such fluctuations. Ultimately, the short positions proved profitable, demonstrating strong confidence in ZEC’s depreciation and patience in waiting for the investment thesis to play out.

Current Exposures and Trader’s Portfolio

In addition to the new positions on XMR, this same address maintains significant involvement in other coins – mainly short positions on Ethereum (ETH), currently valued at $1.97K, and on the mysterious MON. Such diversification of short positions suggests that the trader employs a multi-channel strategy to profit from the depreciation of various assets. This is typical for professional speculators who do not put all their “eggs in one basket.”

This trader’s positions remain of interest to the blockchain community, as their decisions are often seen as market signals by smaller participants. The history of successes and failures shows that even with the best analysis, the path to profitability can be full of dramatic capital swings.