Silk Road founder Ross Ulbricht has faced a $12 million loss on Pump.fun after attempting to liquidate 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.
Ulbricht’s 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),” 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.
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 pivotal in driving the sector’s 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 Ulbricht’s reintegration into society.
Cryptocurrency exchange Kraken committed more than $111,000 in Bitcoin to Ulbricht, while an anonymous developer created the ROSS meme coin, transferring half of the total supply to him.
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.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.