As the cryptocurrency market continues to rock since the collapse of the Terra (LUNA) ecosystem and its “stablecoin” the UST, countless corpses are rising to the surface. After the giant Three Arrows Capital (3AC) or the lender Voyager Digital which declared bankruptcy, we learned this afternoon that another player suffered from the collapse of the market: Uprise.
Uprise is a Korean startup presenting itself as an artificial intelligence-assisted trading platform. Its customers – mostly wealthy – just had to deposit their funds and let the exchange’s algorithm do its thing. The more adventurous could also trade normally. According to the media The Block, Uprise has just admitted to having lost 99% of its customers’ cryptocurrencies during the collapse of the UST and the LUNA token. Bad luck, some would say, but as trouble flies in, that’s not all…
This (very) dry loss can be explained quite simply: the platform had the rather delusional idea of removing 99% of the crypto funds entrusted by its customers from their cold storage in order to be able to bet with them on the futures markets. .
Lack of pot: leverage trading is often a disaster, and Uprise has learned this the hard way, by being “take backhanded by momentary market rebounds” as the group announced to the local media Seoul Economic.
The firm thus lost the equivalent of 20 million dollars by trying to bet downwards on the LUNA, during an anthology short… which ended very badly.
Another giant of the crypto ecosystem bites the dust. Don’t despair though! Diversify, take your time, exercise caution, and you’ll be fine. Register on the FTX reference crypto exchange platformand benefit from a lifetime discount on your trading fees (affiliate link, see conditions on official website).