Multicoin’s DeFi Fiasco: $40M Down, Hot Potato AAVE Edition

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Oh, honey. Multicoin Capital is currently drowning in a DeFi-sized pool of regret, clutching their AAVE tokens like a life raft that’s rapidly deflating. Onchain data reveals they’re $40 million underwater-and yes, they’re selling. Because, you know, obviously.

  • Hot Goss:

  • Multicoin Capital bought 338,005 AAVE tokens at a cool $218 avg via Galaxy Digital’s OTC desk. Spoiler: It’s now worth roughly half that. Oopsie!
  • Lookonchain spotted them dumping AAVE faster than a bad Tinder date after a 55% price nosedive. Classy.
  • AAVE’s plunge to ~$97 is basically DeFi’s way of saying, “Bitcoin’s having a party, and you’re not invited.”

A $73.7 Million “Oops, My Bad” Moment

Between October 13 and November 25, 2025, Multicoin Capital went on a shopping spree, snagging 338,005 AAVE tokens from Galaxy Digital’s OTC wallet at an average price of $218 per token. Total bill? A breezy $73.7 million. Because nothing says “high-conviction bet” like throwing millions at a DeFi blue chip during a market sell-off. Iconic.

Multicoin Capital transferring 150,000 AAVE to Galaxy Digital and BitGo. Because nothing says “I’m fine” like a desperate token shuffle.

Multicoin, the Austin-based crypto venture fund known for their bold bets, thought they were snagging a bargain. “DeFi blue chip at depressed prices? Yes, please!” they probably said. Spoiler: It didn’t age well. AAVE’s now trading near $97, making their $73.7 million bet look like a very expensive lesson in humility.

At current prices, their 338,005 tokens are worth about $32.8 million. Unrealized loss? A cool $40 million. That’s 55% of their original outlay. Ouch. And yes, they’re selling. Because pride goes before a fall, and apparently, so does $40 million.

DeFi Blue Chips: The Uninvited Guests to Bitcoin’s Party

While Bitcoin’s sipping champagne at $100k+, DeFi tokens are stuck at the kids’ table, eating cold leftovers. AAVE, despite powering a massive decentralized lending protocol, is basically the plus-one no one wanted. Sad!

Multicoin’s blunder highlights the risks of OTC accumulation in thin altcoin markets. Galaxy Digital’s OTC desk helped them build their position without moving spot prices, but surprise! It doesn’t protect you from the asset tanking. Who knew?

If Multicoin keeps dumping AAVE, expect more downward pressure. Unless they find another OTC buyer, which, let’s be honest, is like finding a unicorn in a sea of donkeys. Good luck with that!

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2026-05-15 16:27