Whale exits AI agent tokens with losses of up to 99%, crashing thinly traded Virtuals-linked markets and exposing liquidity risks in the AI story.
Summary
- Data from Ember shows an AI agent and Virtuals linked whale positions are closing with losses of 84% to 99% as liquidity and sentiment in the sector collapse.
- Fast on-chain transfers via Arkham-tracked wallets hit shallow order books, causing intraday drops of 8% to 50% for multiple AI agent tokens.
- The episode underlines how narrative AI tokens, launched amid hype, remain too illiquid for major exits, increasing slippage and recovery risk for whales.
A cryptocurrency whale has 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.
AI agents continue to explore crypto strategies
The wallet amassed positions early this year amid a spike in interest in AI agent tokens, which are linked to autonomous trading bots and AI-powered execution systems, according to data. The positions were subsequently closed as liquidity decreased and market sentiment weakened.
The losses varied by token, with the whale losing about 91% on one token and 92% on the other, Ember reported. Two tokens from the Virtuals ecosystem recorded losses of almost 99% each.
An AI-driven art and curation project fell by 84% from its entry price, while another agent token linked to Virtuals fell by around 90%, according to the breakdown.
The selling activity impacted token prices in real time due to low order backlogs, with declines ranging from around 8% to nearly 50% for multiple tokens during the liquidation, Ember data showed.
Screenshots from blockchain researcher Arkham indicated a series of transfers between the whale address and the 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 boom but failed to develop sufficient liquidity depth to support large-scale exits, according to market observers. The liquidation highlighted the challenges faced by large holders of illiquid cryptocurrency markets, where selling pressure can accelerate price declines and reduce recovery value.
AI agent tokens gained attention earlier this year as part of the broader interest in artificial intelligence applications within cryptocurrency markets. According to market data, the sector has since experienced reduced trading volumes and less interest from investors.
