Trader Sells NFTs to Fund Leveraged Ether Bets
A trader known as 黄立成 sold Bored Ape Yacht Club NFTs to finance 25x leveraged Ether long positions before being liquidated.
Updated on Nov. 9, 2026 in Investing
The trader 黄立成 sold three more Bored Ape Yacht Club NFTs to fund additional Ether long positions valued at about $1.479 million. The positions were liquidated on Nov. 6 after the trader sold 15 NFTs at a loss of $505,000 in the five days leading into Nov. 7.
Why it matters
The case shows how selling digital collectibles to sustain leveraged crypto trades can compound losses rapidly. Sales that raised $223,000 were quickly lost, illustrating the risk of using illiquid assets to chase volatile market positions.
The 540 ETH long was opened at $2,304.23 with a liquidation price of $2,203.40 and carried a $32,000 unrealized loss before liquidation. Fifteen NFT sales in the five days before Nov. 7 raised $223,000 against a $505,000 loss, and the source does not report the prices of the three additional BAYC sales.
The players
黄立成
A trader who sold Bored Ape Yacht Club NFTs to finance leveraged Ether long positions before being liquidated.
The details
黄立成 sold BAYC #32 for 12.5 ETH, about $28,000, on Nov. 7 to fund a 25x leveraged Ether long covering 540 ETH. The position was liquidated on Nov. 6, and the trader has been selling NFTs to sustain further Ether long positions.
Timeline
Nov. 6: The trader's leveraged Ether position was liquidated.
Nov. 7: BAYC #32 was sold for 12.5 ETH to fund a 25x leveraged Ether long.
Five days leading into Nov. 7: 15 NFTs were sold at a loss of $505,000.
Nov. 9, 2026: Three additional BAYC sales were reported to fund Ether longs.
Market Dynamics
The case reflects a recurring pattern in crypto markets where traders use 25x leverage on Ether and fund margin with illiquid NFT sales, leaving them exposed to rapid liquidation. Such episodes highlight how collateral drawn from non-financial digital assets can amplify losses in volatile conditions.
Retail traders using leveraged positions can face liquidation within days if prices move against them, as this case shows. Funding margin with the sale of illiquid collectibles can compound losses and leave little cushion for further market swings.
The takeaway
Leveraged positions magnify both gains and losses, and sales of illiquid assets to meet margin needs can accelerate losses. Investors should size positions so that a moderate price move does not force liquidation.
Further reading
For broader context on leveraged trading risks, see our Investing coverage.
Source note: This article includes information reported by TokenPost.
