AI agent whale faces brutal 90%+ loss in illiquid token fire sale

Whale exits AI agent tokens at up to 99% losses, crashing thinly traded Virtuals-linked markets and exposing liquidity risks in the AI narrative.
Summary

• Ember data shows a whale closing AI agent and Virtuals-linked positions at 84%–99% losses as sector liquidity and sentiment collapse.
• Rapid on-chain transfers through Arkham-tracked wallets hit shallow order books, driving 8%–50% intraday drops across multiple AI agent tokens.
• The episode underlines how AI narrative tokens, launched during hype, remain too illiquid for large exits, amplifying slippage and recovery risk for whales.

A cryptocurrency whale liquidated a portfolio of AI agent tokens at a 92% loss following a market downturn in the sector, according to on-chain data published by blockchain analytics firm Ember.

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The wallet accumulated positions at the start of the year during peak interest in AI agent tokens, which are linked to autonomous trading bots and AI-powered execution systems, according to the data. The positions were subsequently closed as liquidity declined and market sentiment weakened.

The losses varied by token, with the whale losing approximately 91% on one token and 92% on another, Ember reported. Two tokens from the Virtuals ecosystem recorded losses approaching 99% each.

An AI-driven art and curation project declined 84% from the entry price, while another Virtuals-linked agent token fell approximately 90%, according to the breakdown.

The selling activity impacted token prices in real time due to shallow order books, with declines ranging from approximately 8% to nearly 50% across multiple tokens during the liquidation, Ember’s data showed.

Screenshots from blockchain explorer Arkham indicated a sequence of transfers between the whale address and liquidity pools, with tens of millions of tokens in each project moving in quick succession, according to the report. The transaction patterns suggested a complete exit rather than a gradual rebalancing of positions.

Many AI agent tokens launched during the broader AI market surge but failed to develop sufficient liquidity depth to support large-scale exits, according to market observers. The liquidation highlighted challenges faced by large holders in illiquid cryptocurrency markets, where selling pressure can accelerate price declines and reduce recovery value.

AI agent tokens gained attention earlier in the year as part of broader interest in artificial intelligence applications within cryptocurrency markets. The sector has since experienced reduced trading volumes and investor interest, according to market data.