Michaela
Silk Road founder Ross Ulbricht has faced a $12 million loss on Pump.fun after attempting to liquidatŠµ ROSS tokens. Despite only receiving $600,000, he still retains 10% of the token supply.
Blockchain analysis firm Arkham Intelligence reported that Ulbricht, or whoever has access to his wallet, attempted to liquidate the ROSS meme coin, which led to a significant drop in its value and resulted in substantial financial losses.
Ulbrichtās Solana donation address received 50% of the supply of ROSS from the developer last week. Ross tried to add single-sided liquidity to sell the coins off passively, but accidentally created a pool with Raydium CPMM (Constant-Product Market Maker) instead of CLMM (Concentrated Liquidity Market Maker),ā Arkham claimed.
Ross Ulbricht set the initial price for the ROSS liquidity pool on Pump.fun incorrectly, allowing an MEV bot to quickly buy and sell the tokens. While the first transaction involved only 5% of the total supply, Ulbricht later attempted to sell 35%, exacerbating the issue.
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The Silk Road founder gained significant attention in the crypto world, partly due to his advocacy for Bitcoin and his prolonged imprisonment. Before his arrest, Bitcoin transactions on the Silk Road were Ńivotal in driving the sectorās growth. Some may argue that many in the early crypto community became acquainted with digital currency through the platform, which played a key role in Bitcoin’s early adoption.
After taking office, President Donald Trump fulfilled a campaign promise by granting a pardon to Ulbricht. Following this, members of the community began donating funds to assist in Ulbrichtās reintegration into society.
Cryptocurrency exchange Kraken committed more than $111,000 in Bitcoin to Ulbricht, while an anonymous develŠ¾per created the ROSS meme coin, transferring half of the total supply to him.
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The incident emphasizes the significant evolution of the cryptocurrency space since Ulbricht’s time of involvement, with advancements in DeFi and meme coins marking a notable shift in the industry’s technical landscape.
This incident emphasizes how even seasoned figures in the cryptocurrency industry, such as Ulbricht, can face challenges on platforms like Pump.fun, emphasizing the evolving nature of the crypto space and its learning curve for all participants.
Read More
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- Pump.fun Sued Over Investor Losses and Alleged Scams
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
