BlockTower CEO Ari Paul’s $1 Million Bitcoin Bet Faces 99.73% Loss for BTC $40-$50,000 Calls
Ari Paul Faces 99.73% Loss As Bitcoin Struggles During Bear Market
Ari Paul, the CEO of Block Tower, a crypto asset investment company, has invested about $1 million USD worth in a Bitcoin price bet, now, he has lost 99.73% of this money and has become the latest victim of the scary Bitcoin bear market.
This sad tale of an investor making a hugely bad move started with Paul deciding to buy Bitcoin options from LedgerX for $3600 USD each about three months ago. Ari Paul’s main mistake was that he was too bullish on Bitcoin while the market is quite clearly bearish, so he bet that the price would be far higher than it is and lost his money.
Ari Paul bet that Bitcoin would be worth at least $50,000 USD on December 28. As the Bitcoin price is currently at around $6600 USD and it does not go up for a long time ago, it looks like is prone to lose everything.
At the moment, Bitcoin bets which expire at December 18 and that calls for Bitcoin being priced at $40,000 are worth only $9.60 USD each on the Deribit exchange. As Paul bet about one million and he will receive about $10 back for each of the 275 bets that he purchased, he will stand to lose 99.73%. It was really a disastrous gamble.
Ari Paul Had An Awful Year
Paul has already let slip that he was in charge of the purchase lately, but now he has deleted the tweet. This was not his only mistake this year, though, as there are accusations of insider trading around him after he made a deal with the Stellar network to purchase Chain, a finance startup, for about a billion USD.
While Bitcoin could make a miraculous comeback at the end of the year and simply change the whole game, it is simply too unlikely that this will happen. Only diehard Bitcoin enthusiasts are still believing that the token will be able to have a big bull run at the end of the year.
2018 was a tough year for investors. It is easy to be a genius during a bull run, people often say, and it looks like Ari Paul is just the latest example that investing and wishing for the best is always an awful strategy. If you do not want to end up like him, read our blog be well informed before you invest.