A whale lost $20.4 million after investing $23 million in AI agent tokens on the Base blockchain, selling for just $2.58 million. This 88.77% drawdown stands as one of crypto’s largest single trade losses, with individual tokens dropping as much as 99%.

The extreme loss highlights rising fears of speculative bubbles in the AI token market. Here, hype and unclear use cases fuel extreme volatility across investment portfolios.

How a Whale Lost Over $20 Million on AI Agent Tokens

On-chain analytics platform Lookonchain tracked the whale’s portfolio across six AI agent tokens. The most significant loss was in FAI, which cost $9.87 million, a 92.31% drop. AIXBT resulted in a $7.81 million loss, representing an 83.74% decrease from the purchase price.

The remaining positions showed equally steep declines. BOTTO fell by $936,000, or 83.62%. POLY erased $839,000, plummeting 98.63%.

NFTXBT saw the steepest percentage drop, falling 99.13% and losing $594,000. MAICRO ended with a $381,000 loss, representing an 89.55% decline.

Cumulative profit and loss chart showing the whale’s sustained drawdown on AI agent tokens. Source: Coin Bureau on X

The investor’s wallet address now holds just $3,584 in assorted assets, mainly ETH and small holdings in BYTE, MONK, and SANTA. The dramatic exit highlights near-total losses from AI agent tokens.

AI Agent Token Speculation Under Scrutiny

The Base blockchain, from Coinbase, is a popular launchpad for AI crypto projects. However, the sector faces criticism for excessive hype and limited working products.

Many AI agent tokens lack real-world utility, leaving traders vulnerable to rapid gains and equally fast crashes.

Observers note that AI agent tokens often surge on promises rather than working use cases. Autonomous agents on the blockchain attract investor attention, but few projects deliver functional results.

As sentiment shifts, token holders face extreme risk due to thin liquidity and shallow utility.

“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,” Lookonchain remarked.

The whale’s exit coincides with waning enthusiasm for AI tokens in early 2025, when the sector plunged 77%.

After a rush of AI-themed investments in late 2024, investors are reassessing as few projects meet their goals. This trend fuels further price drops, especially for tokens with concentrated ownership and little liquidity.

Risk Management: Lessons for Investors

The whale heavily concentrated funds in AI agent tokens on Base, lacking diversification and risk management.

Allocating $23 million across six correlated assets in one narrative increased systematic risk. As sentiment turned, all holdings fell, revealing the risk of concentrated positions.

Breakdown of losses across six AI agent tokens on Base blockchain. Source: Lookonchain

Professional traders typically limit exposure to avoid outsized losses from failing narratives. The lack of stop-losses or disciplined sizing let the whale’s losses spiral.

By the time positions were closed, regaining even break-even status would have required extraordinary returns. The situation illustrates how fast declines occur without thorough analysis and risk planning.

With NFTXBT and POLY losing over 98%, a major comeback appears unlikely.

It remains uncertain whether this signals broader trouble for AI agent tokens. Projects with strong technical teams and real development may weather the storm.

Tokens using AI hype without solid backing are likely to keep struggling as the market asks for results and not just promises.