A Celebrity Whale Just Sold His Bored Ape at a Loss to Bet Big on Ethereum — and His Liquidation Price Will Make You Nervous

Jeffrey Huang, the Taiwanese celebrity and crypto investor known as Machi Big Brother, just sold his Bored Ape Yacht Club NFT at a loss of nearly 7 ETH — and used the money to double down on a leveraged Ethereum long position worth millions.

By Imani Davis | July 18, 2026

The Hook: When a Blue-Chip NFT Becomes Trading Fuel

If you have been in the NFT space for any meaningful period, you know the name. Jeffrey Huang — widely known in crypto circles as Machi Big Brother — has been one of the most visible and active NFT collectors in Asia. His Bored Ape Yacht Club holdings were part of his public identity as a crypto influencer, and BAYC has long been considered the closest thing the NFT world has to a blue-chip asset.

So when on-chain analytics firm Lookonchain reported that Huang sold BAYC #251 and took a loss of 6.99 ETH — roughly 12,400 USD at current prices — to add to his existing Ethereum long position, it raised eyebrows. This is not a random trader panic-selling. This is a sophisticated investor making a deliberate decision to move capital out of a prestige NFT and into a high-stakes leveraged bet on Ethereum.

For regular investors watching from the sidelines, this trade is a window into how large holders are thinking about the relationship between NFTs and cryptocurrencies right now — and it carries some uncomfortable lessons about risk.

On-Chain Evidence: The Numbers Behind the Trade

Thanks to the transparency of blockchain data, we can see the full picture of Huang’s position. After selling the BAYC NFT, he added the proceeds to an Ethereum long position that now stands at 5,264 ETH. At current ETH prices near 1,838 USD, that position is worth approximately 9.67 million USD.

But here is the number that should make you pay attention: the liquidation price for this position is set at 1,756.76 USD per ETH. A liquidation price is the level at which the exchange automatically closes the position to prevent further losses — the trader’s collateral gets seized, and the position is wiped out. If Ethereum drops roughly 4.4 percent from where it is now, the entire position could be liquidated.

• 6.99 ETH loss — Huang lost approximately 12,400 USD on the BAYC #251 sale
• 5,264 ETH long position — currently worth around 9.67 million USD at ETH prices near 1,838 USD
• 1,756.76 USD liquidation price — if ETH drops to this level, the entire position gets wiped out automatically
• Approximately 4.4 percent buffer — the distance between current ETH price and the liquidation trigger

To put that in perspective: a 4.4 percent move in Ethereum is not unusual at all. ETH has had single-day swings larger than that multiple times in 2026. This is not a safe, comfortable margin. This is a highly leveraged position operating with a thin cushion.

The Core Conflict: NFTs Versus Liquidity

Huang’s trade highlights a tension that is defining the 2026 crypto market: the gap between NFT liquidity and cryptocurrency liquidity.

When you hold an NFT — even a blue-chip one like a Bored Ape — your money is locked in a relatively illiquid asset. You cannot quickly sell a BAYC NFT without affecting the market price. The buyer pool is limited, and finding the right buyer at the right price can take days or weeks. When you need capital fast, NFTs are not the easiest thing to convert.

Ethereum, by contrast, is one of the most liquid assets in the world. You can buy or sell millions of dollars worth of ETH in seconds on any major exchange. For a trader who wants to act quickly on a market view — in Huang’s case, a bullish bet on ETH — converting an NFT into ETH makes practical sense, even if it means taking a loss on the NFT.

But this trade also says something bigger about the NFT market. The NFT space has been contracting throughout 2026. Multiple platforms have shut down. NFTfi, a major lending platform that processed over 737 million USD in lifetime loans, closed its doors because the market contraction made operations unsustainable. Exchange Art, a Solana NFT marketplace, is shutting down in August. Binance ended NFT support on its main exchange in June. When one of the most prominent NFT holders in Asia decides to sell a prestige asset at a loss to pivot into crypto trading, it tells you something about where the smart money sees more opportunity right now.

Market Implications: What Regular Investors Should Take Away

There are three lessons here for anyone holding NFTs or thinking about it.

First, understand liquidity risk. An NFT is not like a stock or a cryptocurrency that you can sell instantly. If you need to raise money quickly — to cover an unexpected expense, to take advantage of a different investment opportunity, or to meet a margin call — you may have to sell your NFT at a discount. Huang lost nearly 7 ETH on the sale because he needed the capital more than he needed the NFT. That is the cost of illiquidity.

Second, leveraged crypto positions are genuinely dangerous. A liquidation price of 1,756.76 USD means Huang’s entire 9.67 million USD position can be wiped out by a relatively modest ETH price decline. Leverage — borrowing money to increase the size of your trade — amplifies both gains and losses. When the market moves in your favor, leverage makes you rich. When it moves against you, leverage can erase everything overnight. ETH is currently trading around 1,838 USD, and a drop to the liquidation price is well within the range of normal market volatility.

Third, the NFT market and the broader crypto market are deeply interconnected. When large holders start treating NFTs as a source of capital for crypto trading rather than as long-term holdings, it puts downward pressure on NFT prices. If more whales follow Huang’s lead — selling NFTs to fund crypto positions — it could extend the NFT market’s downturn even further. Conversely, if ETH rallies and Huang’s position pays off, other holders may feel more confident holding onto their NFTs.

The Verdict: A High-Stakes Bet With Lessons for Everyone

Jeffrey Huang’s BAYC sale is a single trade by a single investor — but it illustrates dynamics that affect the entire market. The shift of capital from illiquid NFTs into liquid crypto positions is a trend worth watching. The willingness to operate with a thin liquidation buffer is a reminder that even sophisticated traders take risks that would keep most people up at night.

For regular investors, the takeaway is not to copy the trade. It is to understand the principles at work. Know the liquidity profile of every asset you hold. Understand what leverage actually costs you if the market moves the wrong way. And recognize that in a market where even celebrity collectors are selling blue-chip NFTs at losses to chase crypto gains, the lines between NFTs and the broader crypto market have never been more blurred.

Huang is betting millions that Ethereum will go up. The market will decide whether that bet pays off — and whether other NFT holders follow his lead.

The cryptocurrency market remains highly volatile. This article is for informational purposes only and does not constitute financial advice.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.