Ross Ulbricht Wallet Woes: Accidental Transaction Tanks Pumpfun Coin By $12M
Ross Ulbricht, the founder of the infamous Silk Road market, recently became a headline news again. This is not the pardon of his controversial past or former President Donald Trump. Instead, a $ 12 million loss caused by a souvenir on the platform was traded on the Pumper.fun.
Ross Ulbricht’s error of $ 12 million
On January 29, Ulbricht or a person who can enter the Sorana wallet, It is said Try to manage the liquidity of Ross Token, Ross Token is a coin made by his supporters, aiming to raise funds.
Ross Ulbricht received 50 % of these tokens, which aims to generate financial support after his pardon. He did not immediately liquidate his shares, but gradually increased liquidity on the decentralized exchanges (DEX) Raydium running on the Solana blockchain.
However, Ulbricht’s attempts to provide liquidity were severely damaged by severe errors. When setting the liquidity pool, he mistakenly used the seller (CPMM) model of the constant product, rather than a more refined centralized liquidity marketer (CLMM) model.
The CPMM model is the standard for automatic city merchants, and it does not allow liquidity providers to set a specific price range for their transactions. As a result, ULBRICHT’s tokens were used for trading at unfavorable prices, which immediately and unexpected market consequences.
MEV’s exploitation of ROSS tokens plummeted 90 %
This error configuration has attracted the attention of the maximum extraction value (MEV) robot. The algorithm aims to scan the blockchain transaction to obtain a favorable opportunity and perform a transaction at a speed -like speed.
The robot seized this moment, purchased a $ 1.5 million Rose token with huge discounts, and then quickly sold its profits to the existing liquidity pool. The rapid development of tokens has led to a significant decline and triggers a series of losses.
In order to correct this situation, Ross Ulbricht try In order to repair his liquidity settings, it was caught in the same trap and eventually lost $ 10.5 million. This caused his total losses to reach an amazing $ 12 million because the MEV robot continued to use the wrong liquidity.
The consequences of these transactions caused a 90 % collapse of the price of token, which weakened a large part of its market value.
Despite these setbacks, Ross Ulbricht still retains 10 % of Ross’s supply in another wallet and is now correctly configured in the CLMM pool of Raydium. It is estimated that these remaining shares are worth about $ 200,000, accounting for only part of the original investment.
Charts from Dall-E’s characteristic images, tradingView.com
