Cardano Whale Loses $6.2M In Botched USDA Swap

A Cardano (ADA) whale experienced a significant loss of approximately $6.2 million after attempting to swap 14.45 million ADA (valued at around $7 million) into USDA, a Cardano-native stablecoin, in a low-liquidity pool. The transaction resulted in the wallet receiving only 847,694 USDA, representing an 87% loss.

According to on-chain investigator ZachXBT, the whale wallet had been dormant for roughly five years prior to the swap. The thin liquidity in the USDA pool caused the stablecoin’s price to temporarily spike significantly above its intended peg. Lookonchain confirmed the transaction details and resulting loss.

Screenshots shared by $DeFiPunk show the decentralized exchange (DEX) interface displaying a “high price impact” warning and an estimated slippage of over 87%, which the user acknowledged before confirming the trade. This has sparked debate about user experience and the overall readiness of Cardano’s decentralized finance (DeFi) ecosystem.

Cardano founder Charles Hoskinson suggested the incident may have been an honest mistake by an “inexperienced voucher holder” and dismissed calls for compensation. Some community members, like Cardano YOD₳, raised concerns about the reputational consequences of such incidents and questioned the ecosystem’s priorities. Others emphasized the issue as primarily stemming from inadequate liquidity and a need for improved user interface upgrades.

Data from earlier this month revealed that whales had previously offloaded 4 million ADA as prices dropped. However, there was also recent accumulation by other large holders following a dip below $0.50. Despite these developments, ADA is currently trading around $0.50, down approximately 17% in the last week and 22% over the past 30 days.

The episode has intensified calls for increased stablecoin liquidity on Cardano, with many advocating for a tenfold increase in withdrawals. Hoskinson, however, maintains that providing stablecoins is not his responsibility, placing the onus on the broader Cardano ecosystem.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.