Cardano wallet activates after 5 years, loses $6 million in disastrous ADA-to-USDA swap
Crypto Briefing
A dormant Cardano wallet lost over $6.1 million in a low-liquidity swap of 14.4 million ADA for USDA.Summary
A Cardano wallet that had been inactive for five years executed a disastrous swap, resulting in a loss of over $6.1 million. The holder exchanged 14.4 million ADA tokens, valued at $6.9 million at the time, for only 847,000 USDA, a Cardano native stablecoin. The massive loss was attributed to the extremely low liquidity in the ADA-to-USDA trading pool, which caused a temporary, significant price spike during the transaction, leading to a very unfavorable execution rate. This incident serves as a stark reminder of the substantial risks involved when trading large volumes of crypto assets in illiquid pools.
(Source：Crypto Briefing)