Trend Research’s Ethereum Exit Results in Nearly $750 Million Losses, but Did It Sell at the Bottom?

Trend Research, an investment firm led by Jack Yi, founder of Liquid Capital, has sold its entire Ethereum (ETH) position, reportedly locking in losses of nearly $750 million. The large-scale sell-off comes as Ethereum continues its broader downturn, with the altcoin down more than 30% in the past month. The price performance has reignited debate over whether ETH is approaching a market bottom. Trend Research Sells Ethereum Amid Market Volatility BeInCrypto recently reported that Trend Research began transferring Ethereum to Binance at the beginning of the month. On-chain analytics platform Lookonchain confirmed that the firm completed the sell-off yesterday. In total, Trend Research moved 651,757 ETH, worth approximately $1.34 billion, to Binance at an average price of $2,055. The transactions reduced the firm’s ETH holdings to just 0.0344 ETH, valued at around $72. Data from Arkham Intelligence corroborates the near-complete exit, showing residual balances of roughly $10,000 in USDC and minor amounts of other tokens. “The total loss is ~$747 million,” Lookonchain wrote. Trend Research’s Portfolio After ETH Sell-Off. Source: Arkham The exit followed a leveraged strategy built on the decentralized finance (DeFi) lending protocol Aave. An analyst explained that Trend Research initially purchased ETH on centralized exchanges and deposited it as collateral on Aave. The firm then borrowed stablecoins against the collateral and repeatedly reinvested the borrowed funds into additional ETH purchases, creating a recursive leveraged position that significantly increased both exposure and liquidation risk. As ETH’s price continued to decline, the position moved closer to the liquidation threshold. Rather than risk forced liquidation, Trend Research chose to unwind the entire position voluntarily. 🚨Jack Yi's Trend Research built a $2.6 BILLION ETH leveraged long position via Aave.This month, they sold their entire holdings for $1.74 billion to repay their loans.They lost $7...