Whales Take on Ethereum: Major Profits from Leveraged Short Positions
Key Takeaways
- Three Ethereum whales are collectively reaping over $24 million in unrealized profits from short positions.
- The whale labeled “0xed4” stands out with a leveraged short position achieving a floating profit of $8.8 million.
- The whales “0x0b0” and “0x20c” are both seeing impressive returns, each with floating profits of $8.4 million.
- These positions highlight the significance of market stability, which has allowed the whales’ profits to remain unliquidated.
- The leveraged positions range from 20x to 25x, showcasing the risk and reward within the cryptocurrency market.
WEEX Crypto News, 20 February 2026
In the ever-volatile world of cryptocurrency, substantial market movements are not uncommon. However, the latest news making waves involves three Ethereum (ETH) whales making hefty profits through their strategic short positions. This development sheds light on the intricacies of trading within the crypto sector, where high-risk positions can lead to significant rewards.
Whales and Their Leveraged Positions
Among the standout stories in the current crypto market is the achievement of the three whales who have effectively capitalized on Ethereum’s fluctuation. Each of these traders is currently experiencing unrealized profits exceeding $8 million, specifically due to their leveraged short positions. Leveraging essentially magnifies both the potential profit and loss, and in this scenario, the whales have undoubtedly emerged on the winning side.
The first whale, identified by the address “0xed4,” is leading the pack with a 25x leveraged short position on Ethereum. This setup has generated a floating profit of approximately $8.8 million, underscoring how significant market movements can be skillfully maneuvered for profit. Following closely are “0x0b0” and “0x20c,” who have notched floating profits of $8.4 million each. While “0x0b0” opted for a 20x leverage, “0x20c” matched “0xed4” with a 25x leverage, illustrating diverse strategies underlining their success.
Market Stability as a Catalyst
The current phase of market stability has certainly played a pivotal role in these traders’ success. Had the market been erratic, the potential for forced liquidations would increase, thereby reducing the chance of maintaining such significant profits. However, the relatively calm market conditions have allowed these whales to surpass a combined total of $24 million in unrealized gains, without the looming threat of liquidation.
The scenarios unfolding with these three whales are a testament to how crucial market sentiments can be in the realm of leveraged trading. While the global cryptocurrency market often experiences volatility, periods of stability can act as a double-edged sword—either safeguarding gains or stalling potential losses. In this instance, the whales have adeptly capitalized on the conditions provided.
Implications for Traders
These enormous profits invariably send ripples through the broader trading community. They highlight not only the risk but also the reward associated with high-leverage strategies in crypto markets. It’s a stark reminder for all traders that while leverage can substantially increase potential profits, it equally amplifies risk. Therefore, meticulous strategy and timing are imperative for success in such high-stakes trading environments.
Furthermore, the whales’ success stories also drive home the importance of monitoring market stability. Traders keen on engaging with leveraged positions should consider both the potential trajectory of cryptocurrency prices and the inherent volatility of the assets themselves. Skillfully navigating these parameters can lead to outcomes similar to those experienced by the three successful Ethereum whales.
Conclusion
The triumph of the Ethereum shorting whales amplifies the understanding of how leveraged positions, combined with strategic market monitoring, can yield significant financial outcomes. This moment in crypto trading validates the strategies employed by seasoned traders and highlights how key market insights affect decisions and results. As Ethereum and other digital currencies continue to evolve, such stories provide valuable lessons on the balance between risk and reward.
For those interested in participating in the cryptocurrency market, or potentially emulating the success of these traders, platforms like WEEX offer tools and resources to guide your trading journey [sign up for WEEX here](https://www.weex.com/register?vipCode=vrmi).
FAQ
What are leveraged trading positions?
Leveraged trading involves borrowing funds to increase exposure to a particular asset, thereby amplifying both potential profits and losses. For instance, a 25x leverage implies that for every $1 invested, $25 worth of exposure is controlled.
How do market conditions affect leveraged trading?
Stable market conditions often benefit leveraged positions by reducing the likelihood of forced liquidations. Conversely, high volatility can trigger margin calls, leading to potential losses.
Who are the whales in the cryptocurrency context?
Whales in the cryptocurrency sector refer to individuals or entities holding large amounts of digital assets, enabling them to significantly influence market prices and trends through their trading actions.
What is an unrealized profit?
An unrealized profit refers to gains that exist on paper due to an increase in the value of an asset, which have yet to be converted into actual cash through a sale or closure of the position.
Why are the whale trades significant for the crypto market?
The trading actions of whales can indicate market sentiment and trends. Due to their substantial holdings, whale movements can potentially shift market direction, providing hints and insights for smaller traders and investors.
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Before using Musk's "Western WeChat" X Chat, you need to understand these three questions
The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.
There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."
No. The difference lies in where the keys are stored.
In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.
X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.
This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.
The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.
The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.
After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."
From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.
As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."
Not continuous monitoring, but a clear access point.
For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.
There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."
X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.
These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.
X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.
Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.
The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.
X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.
The help page sentence has never been just technical instructions.
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