Reporter Ko Ran Liquidated for KRW 3.9 Billion in a Single Day (What Happened and What's Left of Her Seed)

Reporter Ko Ran was reportedly liquidated for KRW 3.9 billion in the latest Bitcoin crash. She entered the crypto market around the same time I did, and she kept a fairly balanced view in a market overrun by scammers, so this is a real shame. In this post, I'll go over what happened.

First, let's look at the Bitcoin chart from a few days ago, May 19, 2021, when the price absolutely tanked. Bitcoin started the day around the 43,000 level and touched the 30,000 level within a single day. The move made it clear that Bitcoin's seemingly endless uptrend had broken, with a staggering drop of more than 40%. In theory, even 3x leverage would have been wiped out. It was a terrible situation.

Reporter Ko Ran also seems to have been unable to respond to this market move and was liquidated for KRW 3.9 billion. To be clear, she wasn't margin trading. It looks like she was yield farming with loans on a DeFi protocol called Venus and got liquidated when her collateral fell short. Below is what she wrote herself.

It seems she borrowed on the Venus protocol with a risk level of 20%, which is fairly conservative. In other words, her loan wouldn't be liquidated unless the price fell by more than 20%. Anyone who has been through a bear market knows that 20% is nothing, but in a huge bull market like this one, it would have been hard to expect such a big drop. Overnight, Bitcoin fell well past 20%, more than 40%, before bouncing back. She apparently tried to take action midway as Bitcoin crashed, but the Binance Smart Chain got overloaded and in the end she couldn't do anything. As a result, it looks like about KRW 500 million is left out of KRW 3.9 billion.

People often think only futures and margin trading are risky, but where there are high returns, there is always high risk. Above all, DeFi also lets you put more money to work than your own principal, so the risk of liquidation is always there.

I heard she was so shaken that she cried during a broadcast. That's understandable. If I remember correctly, her initial seed was around KRW 5 or 6 million, and she grew the BTC, ETH and BNB she had steadily accumulated over several years to about KRW 4 billion, only to lose a huge chunk of it.

According to the comment below left by a user named "February 6," her peak holdings were 56 BTC, 660 ETH and 1,300 BNB, worth about KRW 3.9 billion. Now she reportedly has 4.7 BTC, 26 ETH and 700 BNB left. KRW 3.9 billion has turned into KRW 500 million.

Many of you are probably having a hard time after yesterday's drop. I truly hope everyone, including her, stays strong.