A series of epic liquidations took place on April 1st due to poor risk management by altcoin investors. A trader who changed his Twitter nickname to kavaisscam revealed his story regarding his liquidated long position on Kava Network (KAVA). As Kriptokoin.com, we are examining the details of the incident.
Altcoin platform’s joke cost dearly
Many crypto traders were victimized by the tweet shared by Kava Network the other day. Announcing that Elon Musk’s company signed a partnership with Tesla, the altcoin company later stated that this news was an April 1 joke, and Kava drew a great reaction. The explanation of a user who is a victim of this situation is as follows:
I’m shaking. I lost my entire portfolio because of Kava Platform’s April Fools’ joke. I know it’s April 1st but I saw that announcement tweet, I checked the “@” sign to make sure it was official. Yes, it was the official profile and that news was very important.
Crypto According to screenshots shared on Twitter, the announcement was flagged as a joke 32 minutes after it was posted. However, when KAVA started to rise from the $4.53 level, the trader decided to open a 40x long position at $8,400. Subsequently, the altcoin rallied to almost $5 and was withdrawn soon after the announcement was flagged as a joke.
Many platforms share similar posts
When KAVA dropped to $4.65, the trader received a message from Binance informing him that his KAVA/USDT position was liquidated due to insufficient margin balance. Losing his entire portfolio just one step away from a $600,000 profit, the trader reiterated that stop loss should always be used when trading with leverage. Some traders on Crypto Twitter have revealed that they have fallen for similar tricks on different altcoin projects.
Kineko (KKO), a Solana-based altcoin protocol, has released an announcement regarding its alleged endorsement from six-time Ballon d’Or winner Lionel Messi. Moreover, trader and investor AltcoinVentures posted a thread to show the liquidated $170,000 ONE/USDT position. AltcoinVentures states that it opened the position after an announcement made on April 1 a year ago by Harmony (ONE), known as the Ethereum killer.
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