Ross Ulbricht lost $ 12 million against a MEV bot while trying to provide liquidity to the memes Ross on Raydium, a Dex on Solana.
Some traders are indeed “making monetary currencies to exchange pieces of memes. Obtaining a piece of market capitalization industry of $ 105 billion seems to be on the agenda.
The bad news is that on the millions, even billions, of king, recovered, only a small percentage of traders of parts even. Most lose, not only due to bad entries and carpet prints, but sometimes bots.
Ross Ulbricht loses money: what happened?
Arkham Intelligence analysis From January 30, Ross Ulbricht, or a person who has access to his portfolios on Solana, lost around $ 12 million in an unsuccessful attempt to provide cash for a piece of memes named Ross. The meme coin, Ross, similar to Trump, was struck on the pump.amusingA launch on Solana.
According to the blockchain analysis platform, Ulbricht has lost money due to a possible flaw in the liquidity pool on Raydium, a Dex on Solana.
Unfortunately for him, he initially initially initiated the liquidity pool at the wrong price. This error was quickly taken up by a maximum extractable value bot (MEV), which allows it to instantly sniper 1.5 million dollars of chips, or 5% of the total offer, and to sell them in the pool.
(Source)
Ulbricht (or the account administrator) repeated the process even after this error. However, instead of 1.5 million dollars, the Bot Mev has taken another $ 10.5 million, or 35% of the total offer, and sold it in the pool.
After this batch of sales of robots, the Ross token plunged by more than 90%.
(Source)
Blame Solana and Mev Bots?
With the drop in prices, Ross holders have lost money.
Unless Ross is taking momentum now that Ulbricht is a celebrity and known to make the consumer crypto at the time, the token will probably be in line flat or even fall further.
The question is: Should you blame Ulbricht or Solana’s marauding robots?
Ulbricht may have made a mistake, but the presence of Bots Mev meant that there was no time to correct the error.
Instead, Mev Bots spotted this arbitration opportunity and earn money at the expense of others.
And it is a common theme in Solana.
With booming memes pieces and billions of exchanges daily, MEV robots are occupied (unfairly) by cutting millions of all Dex merchants.
These bots continue the blockchain continuously, exploiting ineffectiveness and pricing errors in dexes like Raydium. Once they have chosen an error, they run in advance on users, in their extraction.
For example, in 2024, a trader mistakenly bought WIF at $ 3 while the token exchanged for $ 0.20. A Bot Mev spotted the error and instantly capitalized on this error.
The reports show that Jito Labs, a Flashbot operator, conducts Mev operations in Solana. In 2024, they generated nearly $ 500 million on Solana alone.
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