NAKA Plunges 99% After Bitcoin Treasury Bet, $23.6B Wiped Out
Nakamoto Inc.’s token NAKA collapsed 99.32% over 280 days, erasing about $23.64 billion of market value after the company accumulated 5,398 BTC near record highs. The Bitcoin purchase—positioned as a long-term treasury strategy at roughly $118,000 per BTC—now shows approximately $270 million in unrealized losses as Bitcoin corrected. On-chain data and exchange flows point to sustained selling pressure, large-holder position reductions, and declining trading volumes as prices fell. Social-media sentiment and fear indicators spiked during the drop. The firm has not disclosed a change of treasury strategy; token recovery prospects are tied closely to Bitcoin’s price action and broader market liquidity. For traders: NAKA’s collapse highlights concentrated treasury risk, potential liquidity traps in low-volume phases, and strong correlation to Bitcoin moves—oversold technical signals may present short-term mean-reversion opportunities, while long-term recovery depends on renewed BTC strength and improved investor confidence.
Bearish
The news is bearish. A 99.32% collapse and $23.6B wipeout indicate extreme loss of market value and confidence. Key reasons: 1) Concentrated Bitcoin exposure — Nakamoto Inc.’s large BTC treasury ties NAKA’s valuation directly to BTC swings, amplifying downside when BTC corrects. 2) Liquidity deterioration — trading volumes fell after sell-offs, increasing the risk of price spirals and making recovery harder for holders trying to exit. 3) Sentiment contagion — social-media fear and comparisons to prior crashes can deter new capital and deepen outflows. Short-term impact: elevated volatility, potential oversold bounces that short-term traders may scalp, and wider risk-off behavior among correlated altcoins. Long-term impact: unless Bitcoin sustains a multi-month recovery or company changes treasury management, NAKA faces prolonged devaluation and low liquidity; similar past events (tokens tied to corporate treasuries or heavily concentrated holdings) have seen protracted recoveries or permanent loss of market relevance. Traders should watch BTC support zones, on-chain flows, large-holder addresses, and exchange order-book depth before committing to positions.