Sleeping giant whale suffers a Waterloo: LIT new coin launched for 6 days with a loss of $760,000, intense capital game

A “sleeping giant whale” that was inactive for 1.6 years ended up incurring losses on LIT. According to the latest news, this whale has closed its long position on LIT, with a loss of approximately $767,000, and its overall profit has dropped from $3 million to $420,000. The whale’s experience reflects the complex ecosystem of the market since the launch of this new token: some big players are increasing their holdings, while others are selling off, making capital battles intense and risky.

The Current Market Situation of the New LIT Token

Triggered Volatility in Just 6 Days Since Launch

LIT was listed for trading on December 30, 2025, and as of January 5, it has been less than a week. In these short 6 days, this token has attracted numerous market participants, including long-dormant whales, well-known KOLs, and ordinary investors. According to the latest data, LIT is currently priced at $2.75, with a 24-hour increase of 9.01%, and a market cap of about $688 million.

However, behind the price surge lies a complex game of capital. The losses of this whale are a direct reflection of this battle.

Different Choices of Multiple Participants

Market participation after LIT’s launch is quite diverse:

• Jez (crypto KOL) deposited $908,000 USDC into Lighter on January 3 to increase holdings, currently holding $2.8 million worth of LIT
• Sun Yuchen sold $200,000 worth of LIT on January 3, and still holds 13.23 million LIT (worth $34.4 million)
• A certain whale opened a long position worth $32.62 million on January 5, including LIT

These participants’ actions are completely different. Some are optimistic about LIT’s long-term prospects and are increasing their holdings, some are cashing out at high prices, and others are still opening new positions. This inconsistency is a true reflection of the early market of a new token.

The Logic Behind the Whale’s Loss

From Unrealized Gains to Losses

The change in this whale’s profit is the clearest illustration: from an unrealized profit of $3 million to $420,000, and then to a realized loss of $767,000 upon closing. This indicates that the whale’s operations on LIT did not go as expected.

According to the latest news, this whale held a 1x leveraged long position, which theoretically should not face liquidation risk. But it chose to close the position, suggesting possible scenarios such as:

• Price decline exceeding expectations, completely erasing unrealized gains
• Market sentiment turning, with the whale judging that the price might continue to fall
• Capital needs forcing a stop-loss and closing the position

The High-Risk Nature of New Tokens

The fact that a seasoned whale can lose so much within just 6 days of LIT’s launch reflects several characteristics of new tokens:

• Liquidity is unstable: new tokens often have limited trading depth, and large trades can cause significant price fluctuations
• Participant composition is complex: includes long-term holders optimistic about fundamentals, short-term traders, and cashers
• Price discovery phase: the market is still exploring the true price, often with volatility exceeding expectations
• Information asymmetry: participants have varying levels of information, easily leading to踩踏 (market stampedes)

Market Insights

The Essence of Capital Battles

The actions of various participants since LIT’s launch fundamentally reflect a fact: there is no absolute consensus. Jez’s increased holdings and Sun Yuchen’s sales happening simultaneously show that even industry insiders can have vastly different views on the same project.

The losses of this whale may be a casualty of such disagreements. It might have misjudged the market direction or overestimated its own risk tolerance.

Risk Warning for Investing in New Tokens

From this case, investing in new tokens requires particular caution:

• Do not overly trust whale operations: whales can also make mistakes, and their large size can lead to even bigger errors
• Avoid blindly following the trend: rushing in when seeing KOLs increase holdings may be the last step before a fall
• Focus on fundamentals rather than price: the core of LIT is its underlying technology (zk-Rollup perpetual contracts), price fluctuations are just superficial
• Control risk exposure: new tokens are highly volatile; the invested capital should be within your risk tolerance

Summary

The story of this whale’s loss shows us that even experienced and capital-rich market participants can get caught in traps with new tokens. The market performance of LIT in just 6 days highlights the complexity of new tokens: genuine investment demand and supporters coexist with short-term speculation and cash-outs. Capital battles are fierce, with no clear winners—only different bets and outcomes.

For ordinary investors, the key is not to blindly follow whales or KOLs but to understand the project itself, assess your risk capacity, and make decisions based on comprehensive information. While new tokens are tempting opportunities, they also carry deep traps. The $767,000 loss of this whale serves as a vivid reminder.