TL;DR
- An investor lost $20.43M, an 88.77% drawdown, on concentrated AI agent tokens.
- The portfolio was heavily concentrated in six highly correlated assets.
- Thin liquidity magnified losses as selling pressure met with no buyers.
A high-profile investor took a $20.43 million loss after piling into AI agent tokens on Base, the blockchain associated with Coinbase. The trade started with about $23 million and ended with a full exit worth $2.58 million, an 88.77% drawdown based on figures attributed to Lookonchain and its on-chain tracking.
The episode lands in a market that already prices in sharp swings, yet the size of the hit stands out because the wallet carried heavy concentration. Capital spread across six assets that moved in the same direction, and the portfolio fell almost as one when prices dropped and liquidity failed to absorb sales pressure.
This might be one of the worst investments ever.
A whale/institution spent $23M buying AI agent tokens on #Base and sold everything today for only $2.58M, resulting in a $20.43M(−88.77%) loss.
Breakdown:$FAI: −$9.87M(−92.31%)$AIXBT: −$7.81M(−83.74%)$BOTTO:… pic.twitter.com/DbEqIyD6xT
— Lookonchain (@lookonchain) December 16, 2025
Lookonchain published a breakdown of the damage. FAI delivered the largest dollar loss: a position of $9.87 million fell 92.31%. AIXBT followed with $7.81 million in losses after an 83.74% decline. The rest of the basket moved the same way: BOTTO lost $936,000 (-83.62%), POLY dropped $839,000 (-98.63%), MAICRO fell $381,000 (-89.55%), and NFTXBT posted the deepest percentage hit at -99.13%.
Concentration risk and exits with no buyers
The case delivers a basic risk management lesson: when a portfolio relies on highly correlated assets, a single market shift can wipe out the whole book. The investor tied most of the capital to one theme linked to projects selling the idea of autonomous agents operating through blockchain contracts.
The report describes an overall drawdown of about 77% across the category in the first quarter of 2025. Price action alone does not explain the speed of the collapse. Thin liquidity magnified losses once a large holder sold. Supply hit the market, bids failed to match the flow, and charts turned into steep slides.
On-chain figures also show how little remained after liquidation
The wallet held roughly $3,584 in residual assets, mainly ETH plus small leftovers in minor tokens. The number amounts to dust compared with the capital deployed.
Many AI agent tokens promise automation and autonomous execution, yet the report argues real usage failed to match the level of speculation. When pricing depends more on publicity than on demand from users, the correction arrives fast.
For the market, the takeaway stays plain. Large capital does not cancel risk. A lack of diversification and no clear exit plan can turn a themed bet into a near-total wipeout when buyers disappear and liquidity breaks.
